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 ASX Clear. Initial margins are determined by ASX Clear 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.
You are able to offset the credit premium of bought option positions against ASX futures initial margin liabilities.
The following table shows initial margins effective for open positions as at close of business on 7 August 2012, impacting margin calls made on 8 August 2012.
|Contract||New initial margin||Previous initial margin||Inter-month spread charge|
|S&P/ASX 200 A-REIT index futures||$600||$500||$50|
|S&P/ASX 200 index futures||$2,500||$2,400||$100|
|S&P/ASX 50 index futures||$2,500||$2,400||$100|
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.