The amount of cash or marginable securities (e.g., treasuries, blue chip stocks) that a holder of a futures or options must have in his account to trade futures or to write uncovered options. In futures, margin requirements typically range from 5% to 20% of the futures price, depending on the volatility of the underlying and the purpose of a given trade, whether for speculation or hedging. Since the use of a margin trade gives investors an access to high leverage, volatility of the derivative contract is naturally much greater than that of its underlying.