Margin requirements may represent only a fraction of the total value of the contract. Therefore, futures contracts represent a large contract value that can be controlled with a relatively small amount of capital which provides the trader with greater flexibility and capital efficiency. However, futures involve a high degree of risk and are not suitable for all investors. As with any investment, if you don't understand it, you shouldn't buy it. You could lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit. This is because trading futures is highly leveraged, with a relatively small amount of money controlling assets having a much greater value.
PhillipCapital follows at least the minimum standard exchange margin requirements for each individual product. Intra-day margin percentage buying power is available for qualified clients upon request. If you desire a custom margin for day trading, our team will work with you to determine an appropriate level based on a risk assessment, product volatility, and open interest factors.
