Differentiate between Initial Margin and Maintenance Margin ⎊ Path

Differentiate between Initial Margin and Maintenance Margin.

Initial margin is the amount of collateral required to open a new leveraged position. It is the minimum equity needed at the start of the trade.

Maintenance margin is the minimum equity required to keep the position open. It is a lower amount than the initial margin and is the threshold that triggers a margin call or liquidation if breached.

What Is ‘Initial Margin’ and ‘Maintenance Margin’ in the Context of Perpetual Swaps?

What Is ‘Initial Margin’ and ‘Maintenance Margin’ in Futures Trading?

What Is the Difference between Initial Margin and Maintenance Margin in Derivatives Trading?

Distinguish between Initial Margin and Maintenance Margin in Futures Trading

Distinguish between Initial Margin and Maintenance Margin

How Does “Initial Margin” Differ from “Maintenance Margin” in Derivatives Trading?

What Is the Difference between ‘Initial Margin’ and ‘Maintenance Margin’?

What Is the Difference between Maintenance Margin and Initial Margin?

Glossar

Initial Margin

Collateral ⎊ Initial margin represents the equity a trader must deposit with a broker or exchange as a good faith commitment to cover potential losses arising from derivative positions, notably within cryptocurrency markets.