Notional value per contract:
Estimated margin per contract:
Estimates only. Exchanges set minimum margin requirements and brokers may require more. Actual margins change with market volatility - confirm the current requirement with your broker before trading.
Initial margin vs. maintenance margin
Two numbers matter. Initial margin is what you must have in the account to open a position. Maintenance margin is the level your equity must stay above to keep it. If losses push your account below maintenance, you get a margin call: deposit more funds or the position gets liquidated. Initial margin is always the higher of the two.
Margin is not borrowed money. Unlike a stock margin account, no one lends you anything and you pay no interest on the difference. It is a performance bond posted to guarantee you can cover your losses. That is why a small deposit can control a large contract - and why losses can exceed your deposit quickly.
How to estimate margin on any contract
Start with notional value: price times contract size. Corn at 450 cents on a 5,000-bushel contract is $22,500 of grain. Gold at 2,400 on 100 ounces is $240,000 of metal. Exchange minimum margins on many contracts have historically run in the low-to-mid single digits as a percentage of notional in quiet markets, and noticeably higher when volatility spikes.
Use the calculator with a conservative percentage and you get a working estimate. But it is an estimate. The exchange publishes the official schedule, your clearing firm can add a house surcharge, and your broker will tell you the real number in one phone call. Estimates only - exchanges set actual requirements.
Why margin numbers move
Exchanges raise margins when markets get violent and lower them when things calm down. A limit-move grain market or a crude oil spike can bring a margin increase overnight, and the new rate applies to positions you already hold. Traders who run accounts right at the minimum are the ones who get forced out at the worst moment, so keeping a comfortable cushion above requirements is standard practice among people who last in this business.
Futures trading involves substantial risk of loss and is not suitable for all investors. For producers who want price protection without margin calls at all, our Scale-In hedge program uses forward contracts rather than futures - no daily settlement and no margin calls. It is a different tool for a different job, and we are happy to explain the trade-offs.