How does margin calculation vary between different financial markets?

Margin calculation and requirements can vary significantly depending on the type of financial instrument and market being traded.

For stocks, margin requirements are typically a percentage of the position value. The margin tends to be lower for large-cap established stocks and higher for penny stocks.

In futures trading, the margin varies based on the volatility of the underlying asset. Futures on broad market indexes tend to have lower margins than specific commodities.

Forex margin requirements are lower due to the high leverage permitted in currency trading. Major currency pairs have lower margins versus exotic currency pairs.

Due to volatility from time decay, options generally have higher margin requirements than stocks or futures. Margin is higher for short option positions than for long positions.

Cryptocurrencies that allow leveraged trading have varying margin requirements similar to forex. More established coins tend to have lower margins than alternative ones.

Less volatile assets have lower margin requirements than more volatile ones. Utilise the margin calculator to understand the margin percentage better.