What is Initial Margin requirement? (Global Futures)

For Global Futures trading, the Initial Margin requirement is 10% of the Maintenance Margin set by the Chicago Mercantile Exchange, which varies depending on the specific futures contract you wish to trade.

To open a position, you must deposit the Initial Margin as stipulated by the exchange for the particular futures contract you wish to trade.

If your Net Account Value (NAV) falls near to or below the Maintenance Margin level, you will receive a Margin Call. This means you will need to either deposit more funds into your futures account to bring your Net Account Value back up to the required margin level (Initial Margin Requirement) or reduce your position/s in part or in whole to meet the margin requirement level:

Margin Call:

1. If you receive Margin Mall before 6:00 PM MYT, you will need to either:

i. Deposit more funds (USD) into your Global Futures account to bring your Net Account Value back up to the required margin level (Initial Margin Requirement) before 9.00 PM MYT on Trading Day (T-Day) or;

ii. Close part or all of your outstanding futures position(s) to meet the full Initial Margin Requirement. Otherwise, partial or full Forced Liquidation of your position(s) will be executed at 9.00 PM MYT. This forced liquidation will be done on a first-in, first-out (FIFO) basis and on a best-effort basis to ensure that your Net Account Value meets the required Initial Margin level.

Note: Forced liquidation of futures contracts for agricultural products will be executed at 9:30 PM MYT.

2. If you receive margin call after 6::00 PM MYT, you will need to either:

i. Deposit more funds (USD) into your Global Futures account to bring your Net Account Value back up to the required margin level (Initial Margin Requirement) before 8:00 AM MYT (on the next trading day) or;

ii. Close part or all of your outstanding futures position(s) to meet the full Initial Margin Requirement. Otherwise, partial or full Forced Liquidation of your position(s) will be executed at 8:00 AM MYT (on the next trading day). This forced liquidation will be done on a first-in, first-out (FIFO) basis and on a best-effort basis to ensure that your Net Account Value meets the required Initial Margin level.

Note: Webull Malaysia will charge 8% interest per annum calculated on a daily rest basis based on the margin call amount after the market closes. The interest will accrue on a daily basis, and deducted from your cash balance on the 1st day of the following month.