Futures Trading Terms Glossary

CLEARING MARGIN

Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

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Clearing Margin×

Clearing margins are financial safeguards that ensure clearing members (usually companies or corporations) perform on their customers’ open futures and options contracts. Clearing margins are distinct customer margins that individual buyers and sellers of futures and options contracts are required to deposit with brokers. What it boils down to, clearing margins are liquid funds that brokerages and othering clearing firms must have instant access to in order to guarantee the completion of transactions with customers. They must have enough money to be able to pay out all open positions on accounts, should the client decide to sell their position.