FCPO Margin Calculator

Calculate margin requirements for your FCPO trades

Trade Details

Margin Rates (Approximate)
Initial Margin:RM 5,000/contract
Maintenance Margin:RM 4,500/contract
Margin requirements may vary by broker and market conditions. Always verify with your broker.

Margin Requirements

Initial Margin Required
RM 5,000
To open 1 contract(s)
Maintenance MarginRM 4,500
Minimum to keep position open
Position ValueRM 98,750
1 × RM3950 × 25 tonnes
Effective Leverage19.75x
Position Value ÷ Initial Margin
Margin Percentage5.06%
Of total position value
Margin Call Risk: If your account equity falls below maintenance margin, you may receive a margin call and be forced to close positions.

Understanding Margin Trading

💰 What is Margin?

Margin is the amount of money you need to deposit to open and maintain a futures position. It's not a down payment - it's a good faith deposit to cover potential losses.

📊 Initial vs Maintenance

Initial margin is required to open a position. Maintenance margin is the minimum you must maintain. If your equity falls below maintenance, you'll get a margin call.

⚡ Leverage Effect

With ~RM5,000 margin, you control ~RM100,000 worth of palm oil. This 20x leverage amplifies both profits and losses. Always use appropriate position sizing.

⚠️ Risk Management

Never use all available margin. Keep buffer funds for market fluctuations. Experts recommend using no more than 50% of available margin.