- Initial Margin (IM) refers to the margin you make before the derivative trading is executed.

IM = Number of positions * Last traded price * Contract multiplier * Initial margin ratio

Wherein

• Contract multiplier: 100,000 VND as for VN30 Index Future contract

• FPTS’s initial margin ratio: 13.65% (may be changed according to regulations)

- Variation Margin (VM) is determined by VSD’s regulations and only added to the margin requirement in case the position of portfolio in your account is in loss status

VM = (Current position * Last traded price - Day-opening position * Daily settlement price of the previous trading day - Position traded * Price traded) * Contract multiplier

- Margin Requirement (MR) is the total margin value you have to deposit to maintain your current positions and calculated during trading session for the position portfolio in your derivative trading account, including initial margin (IM) and variation margin (VM).

MR = IM + VM

- Margin ratio at FPTS is 5% of total margin value: The ratio of cash to total margin value retained at FPTS. This amount of money is used to settle payment for daily profit/loss, fee, tax, outstanding loan and default rate, etc.

- You need to keep a regular track of your margin collateral rate to have best trading plans and avoid having your account designated warning or handling rates as below.