Margin is one of the differences between derivatives trading and stock trading. Margin in derivatives transactions acts as a deposit to ensure the fulfillment of the obligations of both parties when entering the contract. The depository center will regulate the initial deposit ratio for each different type of contract.
The initial margin ratio specified by the depository center will clearly state how much of the contract value the investor must deposit before participating in derivatives transactions.
Customers who do not have enough margin as required may be subject to a margin call, and must pay full margin to be able to continue holding positions in Futures Contracts
For example: The initial margin rate prescribed by VSD is 17%. The unit price for trading VN30 index futures contract is 1120. The value of money investors need to deposit to trade 1 VN30 index futures contract is:
Initial margin (IM) = Initial margin ratio * Transaction unit price * Number of futures contracts * Multiplier
