1. Initial Margin, also known as Overnight Margin, is set by the exchanges and is universal for all FCM’s and Brokers. This is the amount required to carry a contract past the daily close. Every trader needs to have an amount equal to the initial margin requirement in their account balance in order to hold a futures position past the closing time of that market.
2. Once a trader meets the initial margin requirement, they are required to maintain the maintenance margin level until the position is closed. The maintenance margin is the minimum amount a trader is required to have in their account and is usually slightly below the initial margin. If the balance in the account falls below the maintenance margin level, they will receive a margin call to replenish the account balance to meet the initial margin requirement.
3. Optimus Futures offers low day-trading margins to accommodate futures traders that require flexible leverage to trade their accounts. Day trading margins, also known as Intraday margins, are determined by our clearing firms and are typically provided as a percentage of the initial margin (E.g. 25%) or a nominal amount (E.g. $500). This is the minimum amount required to enter into a position per contract during regular trading hours without carrying that position past the session’s close.
4. Margins also partially determine commissions. The trading commissions you pay also depends on your margin requirements - the amount required to enter into a position per contract on an intraday basis. Optimus Futures provides margins based on a percentage of the initial margin* (Example 20%) or a nominal amount (Example $400). Intraday margin (day trading margins) are determined by our clearing firms and based on many factors including market volatility, open interest, customer credit profile and the level of funding in the specific customer's account.