Futures deficits and margin calls
When you trade futures, you're required to deposit a certain amount of money, which acts as collateral to open a position. As the value of your positions fluctuate, your account balance may decrease to below the margin requirement, which may cause a futures margin call and an account deficit.
You can link your bank account and deposit GBP which is then converted to USD.
As your buying power fluctuates in real-time based on the open profit or loss of your futures positions, you may experience a loss in the value of your position that causes your buying power to decrease below zero. If this occurs, the funds available in your account will be less than your margin requirement and your account will be in a deficit. You’ll need to deposit funds or close out positions to cover the deficit amount.
It's also possible for your positions to appreciate in value following an account deficit, which may cover the amount of applicable deficit. However, if you have an account deficit that isn’t covered, you may be issued a futures margin call and your futures positions will be subject to liquidation.
A futures margin call occurs when you maintain a futures position through the end of the trading day, but your account doesn't have enough funds to meet the margin requirement.
Futures margin calls are issued in the evening after the most recent trading session.
If you receive a margin call that requires action, you’ll receive an email, push notification, and in-app message on day 1 informing you that you need to resolve the call.
If you don’t resolve the margin call the day it's issued, you’ll be issued a past due margin call the following day.
If you receive a margin call that is left unresolved, you’ll receive an additional email, push notification, and in-app message on day 2 informing you that you’re in a past due margin call and need to resolve the call.
If you don’t resolve your past due margin call in a timely manner, Robinhood may have to liquidate your futures positions to cover the margin call.
If you’re in a past due margin call, your account will be restricted to futures position close only until the past due margin call is resolved.
You can resolve a futures margin call by:
If you choose to deposit funds, it may take up to 1 business day to resolve the margin call, however these are typically resolved intraday.
If you decide to close positions to meet the call, you must make sure you end the trading day above your margin requirement. If you choose to open new positions and those new positions incur additional losses, your account may end the day below your margin requirement, and the call would remain uncovered.
If you’re relying on market appreciation to meet a futures margin call, any gains or losses will be marked to market based off of the daily settlement price of the contract. This gain or loss will determine if your position value increased enough to bring your account above the margin requirements to cover the call.
Your futures margin call amount is based on the settlement price of your held positions at the time of daily settlement, which varies by product, not based on the price the market closes at.
Generally, the daily settlement times for each product in the below categories are as follows:
Generally Greenwich Mean Time (GMT) is 5 hours ahead of Eastern Time (ET). However, it is 4 hours ahead between the 2nd Sunday in March and the last Sunday in March, and again between the last Sunday of October and the first Sunday in November.
Holiday hours may vary. For a full list of hours check out the CME Group’s full holiday calendar.
Generally, it’s best to focus on proper risk management and maintain sufficient capital in your account. Check out Introduction to futures to learn more.
It’s possible to be in a margin call and notice net positive buying power. This is because buying power is updated in real-time, whereas your margin call is based on the previous trade date's end-of-day balances. Generally, if your buying power is positive at the time of daily settlement for your positions (not market close), your margin call will be resolved due to market appreciation.
Futures trading is offered through Robinhood U.K. Ltd. and Robinhood Derivatives, LLC, a US registered futures commission merchant with the Commodity Futures Trading Commission (‘CFTC’) and a member of the National Futures Association (‘NFA’) (NFA ID 0424278).
Futures are complex products with a high risk of losing money rapidly due to leverage. They’re not suitable for all investors. Before you invest, you should make sure you understand how futures work, what the risks are of trading futures and whether you can afford to lose more than your original investment. Please review the Futures Risk Disclosure Statement prior to engaging in futures trading.
Futures contracts and cash in futures accounts that you deposit with Robinhood Derivatives, LLC to margin futures contracts traded on the CME are held in a customer segregated funds account pursuant to regulatory requirements. Futures accounts are not protected by the Securities Investor Protection Corporation (‘SIPC’) or the UK's Financial Services Compensation Scheme (‘FSCS’).
Robinhood U.K. Ltd and Robinhood Derivatives, LLC are subsidiaries of Robinhood Markets, Inc.
Robinhood Derivatives, LLC retains the right to cancel orders and liquidate your positions at any time, without prior notice. Review see the Futures Client Agreement for more details.