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Margin
It is considered as a security amount deposited by the buyer and seller to a third party. Generally, they are brokers, as an escrow money to safeguard the risk from the default of the contract from both parties.
Initial Margin
A margin that is required to be paid by the counter parties at the time of the inception of the contract.
Initial Margin = µ + 3∂
Mark to Market Margin
The margin required to settle daily profit and losses is called Mark to Market Margin.
Maintenance Margin
Margins are required only when the minimum maintenance margin level is breached.
Additional Margin
When an exchange predicts high price fluctuations in the underlying asset, it requires additional margin from the counter parties of the contract.
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