Initial Margin is also required on holidays when trading sessions span multiple days.View If the account does not have sufficient funds to satisfy the Initial margin requirement, the FCM or the Trade Desk may liquidate the entire position.The portion of the purchase price that you must deposit is called margin and is your initial equity or value in the account.The loan from the firm is secured by the securities you purchase.Make sure that you understand what type of account you are opening.If you don't want to trade on margin, choose a cash account for your transactions. This cost is the interest you will pay on the amount you borrow until it is repaid.
Caution—Buying on margin amounts to getting a loan from your firm.
Delivery is not an option unless prior arrangements are made with an approved warehouse and the full value of the underlying is on deposit with the FCM.
Contact the Trade Desk to discuss delivery requirements at least 30 days prior to the 1st Notice date Initial Margins are set by the respective exchange and represent the amount required to hold a position into the next trading session.
The Federal Reserve Board, FINRA, and securities exchanges, including the New York Stock Exchange (NYSE), regulate margin trading.
Most brokerage firms also establish their own more stringent margin requirements.