Margins which is the investors are require to deposit Initial Margin with their respective broker before trading futures contract. Brokers will then calculate the profit and loss and add or subtract funds at the end of day via a processed call Mark-to-Market.
- If there are profits above the Initial Margin, Investors can withdraw their funds from their account
- If losses occur and causes the margin account to drop below the Maintenance Margin level,
- Investors are require to deposit additional funds to meet the Initial Margin requirement.