What Are the Margin Requirements?
Margin is the amount of money you must have in your account to place an order, execute a trade, or maintain a position in the futures market.
Topstep Brokerage follows standardized exchange-set margin requirements for positions that are held through the close of one trading session and into another. Intraday trades are offered reduced margin rates but must be closed no later than 15 minutes prior to the close of trading for that trade date.
Because margin levels can be changed based on volatility, exchange requirements or risk determinations, always confirm current requirements on the Topstep Brokerage Margin Page or relevant communication from the FCM.
Key Points
- Margin is the minimum amount required to place an order, trade, or hold a position.
- Topstep Brokerage uses three key margin types: Pre-Trade Margin, Day Trading Margin, and Hold Margin.
- Margin requirements vary by product and contract month.
- Current margin rates are available on the official Topstep Brokerage Margin Page.
- Always verify current margin requirements before trading.
Pre-Trade Margin
What it is: The funds required to initiate a new futures order or increase an existing position.
How it works: When an order is placed, the system sets aside the applicable margin amount, which remains the customer’s property but is restricted for use until the position is closed.
Why it matters: You must maintain sufficient available equity to meet this requirement, or your order may be rejected.
Day Trading Margin
What it is: The reduced margin required to hold a position during intraday trading hours.
How it works: If your account's equity falls below the required intraday margin level, all open positions will be liquidated and working orders will be canceled.
Additional safeguard: Accounts that fall below the minimum balance threshold (e.g., $100) will be subject to automatic liquidation.
Why it matters: Provides flexibility but also carries higher liquidation risk if balances fluctuate.
Hold Margin
What it is: The funds required to hold a position beyond the final 15 minutes of the regular trading session and into the next trading day.
How it works: You must meet this requirement 15 minutes before the product’s daily closure to avoid auto-liquidation.
Why it matters: Overnight trading carries greater risk due to reduced liquidity and higher volatility.
Important Notes
- Margin requirements can vary by product type and contract month.
- Exchange and brokerage margin policies may change without notice.
- Always confirm current requirements on the Topstep Brokerage Margin Page before trading.