1, The minimum value on deposit in an account to establish a new futures or options position, or to add to an existing position. Initial margin amount levels differ by contract. Normally brokers sets the level of initial margin required, and it may change at any time at their discretion. Increases or decreases in initial margin levels reflect anticipated or actual changes in market volatility. Also called initial performance bond.

2, The required initial deposit of collateral to enter into a position as a guarantee on future performance.