Understanding Futures Margin

December 7, 2022
Learn how changes in futures prices affect margin and your account.
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Are futures right for your trade plan?

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The Basics of Trading Futures Contracts

Learn how futures contracts work, the history and evolution of futures trading, the role of futures contracts in the financial market, and how to trade futures.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

All investing involves risks, including the loss of principal invested.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).

The risk of trading futures can be substantial. The valuation of futures may fluctuate, and as a result, investors may lose more than their original investment. Investors must consider whether futures are a suitable investment for their own personal financial situation before trading. Past performance is not indicative of future results.

Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure for Futures and Options prior to trading futures products. Futures accounts are not protected by SIPC. Futures and futures options trading services provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify.

Charles Schwab Futures and Forex LLC makes no investment recommendations and does not provide financial, tax, or legal advice. Content and tools are provided for educational and informational purposes only. Any stock, options, or futures symbol displayed are for illustrative purposes only and are not intended to portray a recommendation to buy or sell a particular product.

Margin trading increases your level of market risk. Your downside is not limited to the collateral value in your margin account. Schwab may liquidate, without contacting you, to meet a margin call. Schwab may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call.

Charles Schwab Futures and Forex LLC (NFA Member) and Charles Schwab & Co., Inc. (Member FINRA/SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

Charles Schwab Futures and Forex LLC 600 W. Chicago, Suite 800, Chicago IL 60654

The S&P 500® is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by Charles Schwab & Co., Inc. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). Charles Schwab & Co., Inc. is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions, or interruptions of the S&P 500.

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