(1) To protect the interests of the brokerage firm, when the customer is unable to pay for any reason, the brokerage firm will compensate with the margin.

(2) In order to control speculative activities on the exchange. Under normal circumstances, the margin is about 10% of the total value of the contract traded. Judging from the essence of margin, it is a sum of funds paid by traders to the commodity clearing house through a broker, without any interest, to ensure that traders are able to pay commissions and possible losses. But trading margin is by no means a deposit for buying and selling futures.

Initial margin: The minimum performance deposit that traders in the futures market must deposit into their margin accounts when placing orders to buy or sell futures contracts. Clearing Margin: A financial guarantee to ensure that a clearing member (usually a company or enterprise) will perform short positions on its customers' futures and options contracts. The settlement bond is different from the customer performance bond. Customer performance bonds are deposited with brokers, while settlement bonds are deposited with clearinghouses.

Performance bond: A deposit deposited in a trading account by buyers and sellers of futures contracts or sellers of options to ensure the performance of the contract. Commodity futures margin is not a payment for a stock, nor is it a deposit paid in advance for trading the commodity, but a deposit of good standing.

Maintenance Margin: Clients must maintain a minimum margin amount in their margin account.