Futures mechanics
What is Initial Margin and what role does it play when opening a new futures position?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Initial margin is the minimum exchange-set deposit required to open a new futures position before the trade is executed.
How it works
Brokers may require amounts at or above CME's exchange minimum initial margin, which varies with volatility and risk model updates.
An example
Opening one ES contract requires posting the broker's listed initial margin amount.
Risk & limitations
Initial margin can increase on short notice during volatile market conditions.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.