Whenever someone enters into a contract position in the futures market, a security deposit, commonly called a margin requirement, must be paid. While the futures margin may seem to be a partial payment for the security on which the futures contract is based, it only represents security to cover any losses that may result from adverse price movements. The minimum margin requirements set by the exchange must be collected by the clearing member firms (members of the exchange involved in the clearinghouse operations) when their customers take positions in the market. In turn, the clearing member firms must deposit a fixed portion of these margins with the clearinghouse.