FUTURES: When you get a margin call, you are required to deposit funds to bring back the balance of the margin account to the INITIAL margin requirement. EQUITIES: When you get a margin call, you are required to deposit funds to bring back the balance of the margin account to the MAINTENANCE margin requirement. Is it true? Is this difference because initial margins are much higher for stocks than futures trading?
I saw no difference b/w the two.
it is true, there is this difference! I had my doubts couple of days back too …
mihau10 Wrote: ------------------------------------------------------- > FUTURES: > When you get a margin call, you are required to > deposit funds to bring back the balance of the > margin account to the INITIAL margin requirement. > > EQUITIES: > When you get a margin call, you are required to > deposit funds to bring back the balance of the > margin account to the MAINTENANCE margin > requirement. > > Is it true? Is this difference because initial > margins are much higher for stocks than futures > trading? That is correct. Be careful when you solve problems.