Variation Margin
Last reviewed: September 2, 2026
Variation margin is the money credited or debited as a futures position is marked to market. It reflects gains and losses caused by changes in the contract price.
Simple example
If a futures position loses $500 during the day, the account's equity is reduced by that loss. If the account falls below the required maintenance level, more funds may be required.
Variation margin vs initial margin
Initial margin is the collateral required to open a position. Variation margin reflects ongoing gains and losses after the position is open.
See Futures Margin and Daily Settlement for the full explanation.
Sources and further reading
- CFTC Futures Glossary — official margin definitions.