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How is ‘margin’ determined? |
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| Each day, your broker will calculate the current value of futures and option contracts held in your account. If the equity in your account has declined in value to the "maintenance margin level" (approximately 75% of the amount required to enter into the trades originally), you are required to provide more margin money to restore the initial margin level. This is called a "margin call." This eliminates the needs to make repeated margin calls when daily price changes are relatively small. |
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