Definitions for "Initial margin"
Used in the context of general equities. 1) Amount of money deposited by both buyers and sellers of futures contracts to ensure performance of the terms of the contract; 2) amount of cash or eligible securities required to be deposited with a broker before engaging in margin transactions.
The returnable collateral deposited when initiating an open position. This is required by the clearing house from clearing members as protection against default of a futures or options contract. The exchange requires the level of initial margin set by the clearing house to be the minimum required by (clearing) members from their clients. The level is subject to changes in line with market conditions. See Margining.
The amount a futures market participant must deposit into a margin account at the time an order is placed to buy or sell a futures contract. See also Margin.
Keywords:  forex, surety, bond, dealer, potential
The level of money required by the exchange (or forex dealer) to serve as a surety bond against potential losses resulting in the market.
See initial performance bond.