Can a Trader Withdraw Initial Margin While a Position Is Open? ⎊ Path

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.

Can an Exchange Distribute Excess Insurance Fund Back to Traders?

How Does the Concept of ‘Free Margin’ Relate to the Maintenance Margin?

Can a Trader Withdraw Funds If Their Account Is Only at the Initial Margin Level?

How Does the Regulator Define and Police ‘Spoofing’ in Derivatives Trading?

What Happens If a Variation Margin Credit Brings the Account above the Initial Margin?

Can a Trader Use Excess Margin to Open New Positions?

What Is ‘Free Margin’ in a Trading Account?

What Happens If a Trader’s Equity Falls below the Initial Margin but Remains above the Maintenance Margin?