About Futures Margin Calculator
Calculate futures margin requirements with our free online calculator. Understanding margin is essential for futures trading as it determines the capital required to open and maintain positions.
How Futures Margin Works
Futures margin is a good-faith deposit required to control a futures contract. Unlike stock margin, which is a loan, futures margin is a performance bond ensuring you can cover potential losses. There are two types:
- Initial Margin: The amount required to open a new position
- Maintenance Margin: The minimum balance required to keep a position open
Notional Value = Contracts x Contract Size x Price
Margin Required = Notional Value x (Margin Rate / 100)
Leverage = 100 / Margin Rate
Common Futures Contract Sizes
- E-mini S&P 500 (ES): $50 x S&P 500 Index
- Micro E-mini S&P 500 (MES): $5 x S&P 500 Index
- Crude Oil (CL): 1,000 barrels
- Gold (GC): 100 troy ounces
- E-mini Nasdaq (NQ): $20 x Nasdaq-100 Index
Why Understanding Margin Matters
Proper margin management is crucial for futures traders. With leverage of 10x or more, small price movements can result in significant profits or losses. Always ensure you have sufficient capital beyond the minimum margin requirement to handle market volatility.