ASX Index Futures - Initial Margins

An initial margin is paid by both the buyer and the seller of a futures contract. It covers the maximum probable one-day move in the price of the futures contract, as assessed by ACH. Initial margins are determined by ACH according to the volatility of the underlying index and are reviewed regularly.

If a portfolio includes positions in more than one futures contract series, offsets on initial margins may be available.

From 14 October 2002 you are able to offset the credit premium of bought option positions against futures initial margin liabilities.

The following table shows initial margins effective for open positions as at close of business on 7 November 2008, impacting margin calls made on 10 November 2008.

Contract New Initial Margin  Previous Initial Margin Intermonth Spread Charge
XJO Index Futures $4,822 $4,357 $100
XFL Index Futures $4,870  $4,375 $100
XPJ Index Futures  $1,841  $2,271 $50

All the above futures contracts attract an inter commodity margin offset of 50%.

There is a range of eligible collateral that can be used to cover initial margins. Variation margins must be paid in cash.

For more information on margins, refer to Futures margins.