Differentiate between Initial Margin and Maintenance Margin.
Initial margin is the minimum amount of capital a trader must deposit in their margin account to open a new futures position. It acts as collateral against potential losses.
Maintenance margin is a lower threshold; it is the minimum amount of equity that must be maintained in the margin account after the position is opened. If the account balance falls below the maintenance margin due to adverse price movements, the trader receives a margin call.
