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Overnight margin

The full exchange-set margin that applies to any futures position still open at the end of the session.

Brokers offer discounted intraday rates, but at a published cutoff — often shortly before the daily close — every open position is re-checked against full initial-margin. Accounts that cannot cover are liquidated, sometimes automatically and sometimes into thin after-hours markets.

Traders who size by day margin and "decide later" whether to hold overnight regularly discover this the hard way.

Example: a $3,000 account holding four MNQ contracts on $100 day margin is fine at 4pm and short by thousands at 4:59pm if overnight margin is $2,000 per contract.

Related: day-trading-margin, initial-margin, auto-liquidation, house-requirement, overnight-session

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Margin and leverageA small deposit controlling a much larger position, and the point at which losses trigger a margin call.Position you controlnotional value $100,000your margin deposit: $5,000$100,000 / $5,000 = 20:1 leverageYour deposit absorbs every dollar of loss$5,000$2,500$0Equity leftMARGIN CALLequity has fallen to $2,5000%1%2%2.5%3%4%5%How far the price moves against you
Margin and leverage. A $5,000 deposit can control a $100,000 position, which is 20:1 leverage. Because the loss is measured on the full $100,000, a 2.5% move against you halves the deposit and brings a margin call, and a 5% move uses all of it.

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