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FuturesBeginner

Maintenance Margin

The minimum equity level a futures account must maintain; falling below triggers a margin call demanding top-up to initial margin.

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Maintenance margin is the lower boundary of acceptable equity in a futures margin account. While initial margin is required to open a trade, maintenance margin is the floor that must be maintained while the position is open.

When daily mark-to-market losses push account equity below the maintenance level, the broker issues a margin call. The trader must deposit enough to bring the account back to initial margin — not just maintenance — by the next session's open. Failure to meet the call results in forced liquidation.

Maintenance margin is typically ~90% of initial margin for most CME products — the clearinghouse usually sets initial at about 1.1× maintenance (e.g. ES $15,840 initial vs $14,400 maintenance). These figures are set by the exchange and change with volatility, so always check the current spec.

Example

ES initial margin = $15,840; maintenance margin = $14,400. A trader enters long with $16,000. Three consecutive down days lose $1,700 — equity falls to $14,300, below maintenance. The broker calls for $1,540 to restore the $15,840 initial level.

#margin#futures#risk

Related Terms

Futures

Clearinghouse / Central Counterparty (CCP)

The entity that steps between buyer and seller in every cleared trade, becoming counterparty to both and guaranteeing performance so neither faces the other's default.

Intermediate
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Daily Settlement Price

The official closing price established by the exchange each session, used to calculate mark-to-market P&L and margin requirements.

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Day-Trading Margin

A reduced intraday margin rate offered by retail brokers for futures positions opened and closed within the same session.

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Initial Margin

The minimum deposit required to open one futures contract, set by the exchange clearing house (CME, CBOT, NYMEX).

Beginner
Futures

Liquidation

The forced closure of a futures position by the broker when account equity falls below margin requirements.

Intermediate
Futures

Mark-to-Market

The daily revaluation of open futures positions to the settlement price, with gains and losses settled in cash each session.

Intermediate
Futures

Overnight Margin

The full exchange-minimum initial margin required to carry a futures position through the close into the next session.

Intermediate
Futures

SPAN Margin

Standard Portfolio Analysis of Risk — the CME's risk-based margin system that calculates required margin across a portfolio of futures and options.

Advanced
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Variation Margin

The daily cash transfer that settles mark-to-market gains and losses on open futures positions, paid to the clearinghouse and credited to winners.

Intermediate