Futures margin calls: initial margin, maintenance margin & forced liquidation
Last updated: 2026-08-19
Opening a Taiwan futures position requires depositing initial margin (原始保證金) set by TAIFEX. If your account equity falls below maintenance margin (維持保證金) as the market moves, your broker issues a margin call — and you must top up back to the full initial margin, not just the maintenance level. Not investment advice.
Three margin concepts: initial, settlement, and maintenance
The Taiwan Futures Exchange (TAIFEX) publishes three related figures per contract. Initial margin (原始保證金) is what you must deposit to open a position — order without it and the broker rejects the trade. Settlement margin (結算保證金) is an exchange-level clearing figure used in daily mark-to-market settlement. Maintenance margin (維持保證金) is the floor your account equity must stay above once a position is open — TAIFEX sets it lower than the initial margin, which is exactly what makes the margin-call gap possible.
How the margin-call process works
Open a position → account equity moves with the market via daily settlement → if equity drops below maintenance margin, the broker issues a margin call (保證金追繳) → the trader must deposit enough to bring equity back up to the initial margin level, by the broker's deadline (commonly the next trading day) → if that deadline passes without enough deposited, the broker force-liquidates (強制平倉) enough of the position to bring the account back into compliance, without further consent from the trader.
Why you top up to the initial margin, not just the maintenance level
This is the detail traders most often get wrong. The maintenance margin is only the trigger level — the point at which a call is issued. The amount you must deposit is calculated to bring your account back to the initial margin, which is higher. Topping up to just the maintenance level would leave you with no buffer at all, and immediately exposed to another call on the next adverse move.
Day-trading margin is reduced
For same-day day-trade offsetting on eligible contracts (e.g. the TAIEX futures), TAIFEX sets a reduced margin — commonly around half the standard initial margin — reflecting the shorter holding period's lower overnight risk. This reduced rate applies only while the position is opened and closed within the same trading day; a position carried overnight requires the full standard margin.
Where to check current margin amounts
TAIFEX adjusts margin amounts periodically based on market volatility, not on a fixed schedule — so any specific NT$ figure quoted elsewhere can be out of date. Check the exchange's own published margin table for the current amount on any contract, free, before trading. Your futures broker's account statement will also show your own position's margin status in real time.
FAQ
What is a futures margin call, in one sentence?
It's your broker's demand for more funds after your account equity falls below the maintenance margin, so you can bring the account back up to the initial margin level.
What's the difference between initial and maintenance margin?
Initial margin is what you must deposit to open a position. Maintenance margin is a lower threshold — the level your equity must stay above once you hold the position; dropping below it triggers a margin call.
I got a margin call — how much do I need to deposit?
Enough to bring your account equity back up to the full initial margin level — not just back to the maintenance margin. This is the most commonly misunderstood part of the process.
What happens if I don't deposit in time?
Your broker force-liquidates (強制平倉) enough of your position — without needing your further consent — to bring the account back into compliance. This can happen at a price you would not have chosen yourself. Not investment advice.
Is day-trading margin lower?
Yes, for eligible contracts (e.g. TAIEX futures) when the position is opened and closed the same day — commonly around half the standard initial margin. A position held overnight needs the full standard amount.
How often do margin amounts change, and where do I check the current figure?
TAIFEX adjusts margin amounts based on market volatility, not a fixed schedule, so figures can change without much notice. Check the exchange's official margin table for the current amount before trading — it's free and always current.
Not investment advice. This is a factual summary of TAIFEX's futures margin-call mechanism — not a recommendation about position sizing, leverage or when to trade. Specific margin amounts change periodically; always check the exchange's current table. Source: Taiwan Futures Exchange.