Can a Trader Withdraw Initial Margin While a Position Is Open?
No, a trader cannot withdraw the portion of their margin (the used margin) that is currently required to collateralize an open leveraged position. This margin is locked by the exchange to guarantee the trade's performance.
They can only withdraw the 'free margin,' which is the excess equity not required to maintain the current positions. Once the position is closed, the initial margin is released back into the free margin, making it available for withdrawal.
