Futures trading margin is divided into:
1. Initial margin refers to the funds that traders need to pay when they open a new position. According to the transaction amount and margin ratio, that is, initial margin = transaction amount and margin ratio.
2. The minimum balance that must be kept in the margin account is called maintenance margin. Maintenance margin = settlement price × position × margin ratio ×k(k is a constant, called maintenance margin ratio, which is usually 0.75 in China). When the book balance of the margin is lower than the maintenance margin, the trader must make up the margin within the specified time, otherwise the exchange or institution has the right to carry out compulsory liquidation on the next trading day.
Note: If the original margin minus the loss value is greater than the maintenance margin, the futures company will generally not close the position immediately when the customer suffers losses, but will only inform the customer to add the margin. However, if the original margin MINUS the loss value is less than the maintenance margin, the futures company will not only issue an insurance recovery notice, but also maintain the right to close the position immediately.