Margin
When you open a position on a Future or an Option, you need to have the required "Margin" funds (also sometimes called "Coverage" available in your account.
Futures
The margins for Futures contracts are listed on our web site
To open a position on a Futures contract, you need to have a minimum amount of cash in your portfolio:
- of the amount listed in the column "Intraday > Initial margin" when "Intraday" trading hours are in effect
- of the amount listed in the column "Overnight > Initial margin" outside of these hours, when "Overnight" hours are in effect.
To maintain a position that's already open you need to make sure you have at least the minimum amount in the column "Position maintenance" (either intraday or overnight depending on the applicable requirements at the current time of day).
Click here to check intraday trading hours
The hours indicated in the table below are subject to modification without notice by Interactive Brokers, or the exchanges.
* In exchange local market time
| Futures | Beginning of intraday* | End of intraday* | |
|---|---|---|---|
| France Futures | CAC40 | 8:00 | 18:00 |
| Eurex Futures | Index Futures and interest rate Futures | 7:50 | 21:45 |
| US Futures | S&P500, Mini S&P500, Mini Nasdaq, Mini DJ | 8:30 | 15:00 |
| NYMEX Oil & Gas | 9:00 | 15:45 | |
| Copper, Gold, Silver | 8:10, 8:20, 8:25 | 15:45 | |
| Netherlands Futures | AEX Futures | 8:00 | 18:15 |
| Italy Futures | FTSE Mib, Mini FTSE Mib | 9:00 | 17:35 |
| Spain Futures | IBEX, Mini IBEX | 9:00 | 17:15 |
| Swiss Futures | SMI | 8:00 | 17:15 |
To calculate margin on futures, multiply the margin of the Future by the number of contracts you want to execute. To place your order, the cash available in your portfolio must be greater than the margin required for the position you want to open - Here are some examples
Example 1
Imagine the following scenario :
- You have 10,000 € cash in your portfolio.
- The required margin on the CAC 40 Future is 2,000 € when you want to open the position.
- You want to buy 4 contracts.
- The required margin is:
- = [CAC 40 Margin] × [Number of contracts]
- = 2 000 × 4
- = 8 000 €
- You have enough cash to open this position (10,000 € > 8,000 €)
Exemple 2
Imagine the following scenario :
- You have 10,000 € cash in your portfolio.
- You already have an open position that requires 8,000 € of margin.
- This position is currently losing 600 €.
- The required margin on the CAC 40 Future is 2,000 € when you want to open the position.
- You want to buy 1 more contract.
- The required margin is:
- = [CAC 40 Margin] × [Number of contracts]
- = 2 000 × 1
- = 2 000 €
- Your available cash is:
- = [Portfolio amount] - [margin used by your open positions] + [Gains & Losses of your current positions]
- = 10 000 € - 8 000 € + (- 600 €)
- = 1 400 €
- You don't have enough cash to buy this additional contract (1,400 € < 2,000 €).
Options
Margins on options are established with risk models which are specific to each exchange and to Interactive Brokers. These models depend on the type of position (Buy or Sell / Put or Call / "Naked" positions or covered/combo) - learn more.
Note that if you take a hedging position in the opposite direction of a position that is already opened (ex: between 2 options, between an option and its underlying asset), this can reduce the amount of margin required for your positions. The precise conditions for a reduction of margin to apply depend on each exchange. Check the exchange websites for more information.
- To evaluate the cash available for trading, you need to take into account:
- The margin already used by your open positions
- The margin already used by your pending orders to enter the market (or by increasing position size)
- The gains / losses of your open positions
- Note that in case of special market conditions, or in anticipation of an important event (ex: elections, corporate actions...), Interactive Brokers may significantly increase margins without notice, or remove the possibility to acquire certain financial instruments on margin.
- The placement of a pending order (ex: stop, limit) may be subject to margin requirements if its effect would be to increase your position size or reverse your position.
- Interactive Brokers uses portfolio analysis models that take into account different scenarios (evolution of your positions and execution of your pending orders) and takes into account the most unfavorable scenario to determine margin requirements.
