[Verse 1] Sarah opens her trading account today Wants to buy crude oil but can't afford to pay Full contract value, that's one hundred grand So she posts initial margin, twenty percent in hand The clearinghouse whispers "twenty thousand please" This deposit cushions potential unease Not a payment for oil, just security A promise that losses won't run wild and free [Chorus] Initial margin opens the door Maintenance keeps you on the floor When equity drops below the line Margin call - you're out of time I-M starts the game you see M-M keeps you safely free Risk contained in every trade That's how futures margins are made [Verse 2] Next morning crude drops two dollars per barrel Sarah's position bleeds, her account's in peril Twenty thousand shrinks to fifteen thousand flat Below maintenance level - imagine that Her broker sends notice: "deposit more cash" Before tomorrow's close, avoid the crash Margin call demands she top it up Fill that cushion or we shut you up [Chorus] Initial margin opens the door Maintenance keeps you on the floor When equity drops below the line Margin call - you're out of time I-M starts the game you see M-M keeps you safely free Risk contained in every trade That's how futures margins are made [Bridge] Marking to market every single day Profits flow in, losses flow away Clearinghouse stands between each side Default risk has nowhere to hide Settlement variation, credit or debit Daily adjustments keep the system fit [Verse 3] Sarah wires five thousand, brings account to par Now she's learned the lesson about leverage's scar Futures amplify every price move's swing Margin system clips volatility's wing Protection for all participants here Systematic risk simply disappears Initial threshold, maintenance floor Risk management at the market's core [Outro] When you trade futures, remember the three Initial margin sets you free Maintenance margin keeps you there Margin calls say "buyer beware"
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