Intraday Margin vs. Exchange Margin: The Difference That Can Blow Your Account
Most beginners think margin is just “the amount you need to open a position.” Wrong. There are two different margin systems—intraday margin and exchange margin—and if you confuse them, your broker will liquidate you without hesitation.
What Intraday Margin Actually Is
Intraday margin is the discount rate your broker gives you to place trades during normal market hours. It's much cheaper than exchange margin, which is why beginners love it—but it’s also why they get blown out at the end of the session.
| Contract | Typical Intraday Margin | Exchange Margin |
|---|---|---|
| ES | $500–$1,200 | $12,000+ |
| NQ | $500–$1,500 | $16,000+ |
| CL | $500–$1,000 | $5,000+ |
If you aren’t sure how margin ties back to contract value, re-read Futures Leverage Explained.
What Exchange Margin Means
Exchange margin is the real required amount set by the CME, not your broker. This is the margin that applies overnight. Brokers don’t control it. They must enforce it.
That means your $500 intraday ES position becomes a $12,000+ requirement if you hold through the cutoff. Most beginners don’t realize this until their trade gets force-closed.
Why Brokers Offer Cheap Intraday Margin
Simple:
- More traders = more commissions
- Brokers assume you’ll be flat before the margin switch
- They protect themselves, not you
Intraday margin is a business move, not a favor.
The Liquidation Trap
The intraday-to-exchange margin switch usually hits in the last 5–15 minutes of the trading session. If you’re still in a position and don’t have the capital to meet exchange margin, your broker liquidates you instantly and automatically.
This has nothing to do with your stop loss, your analysis, or your plan. You simply don’t meet the required overnight margin.
Examples of Margin Shock
- You trade ES with $600 intraday margin
- You forget about the margin switch
- The requirement jumps to $12,000+
- Your account has $2,000
- Broker force-closes your position at market
You took the trade legally—but you couldn’t hold it. That’s where beginners get crushed.
How to Protect Yourself
Three simple rules:
- Know your broker’s intraday margin cutoff time
- Never rely on discounted margin to justify oversized positions
- If you want to carry overnight, check the exchange margin first
Also understand how day vs. overnight margin interacts with contract volatility. The exchange doesn't care about your comfort level.
Final Takeaway: Cheap Margin = Expensive Mistakes
Intraday margin is a trap if you don’t understand how quickly it can flip to exchange margin. The market won’t kill you—the rules will, if you ignore them.