Explain the Difference between 'Initial Margin' and 'Maintenance Margin' ⎊ Path

Explain the Difference between ‘Initial Margin’ and ‘Maintenance Margin’.

Initial Margin is the minimum amount of capital required in a futures account to open a new position. Maintenance Margin is the minimum amount that must be maintained in the account after the position is opened.

If the account equity falls below the maintenance margin due to adverse price movements, a margin call is issued to bring the account back up to the initial margin level.

Differentiate between Initial Margin and Maintenance Margin

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

What Is the Difference between “Initial Margin” and “Maintenance Margin” in Futures Trading?

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

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

Distinguish between Initial Margin and Maintenance Margin in Futures Trading

Explain the Term ‘Maintenance Margin’ in the Context of Leveraged Derivatives Trading

Explain the Difference between ‘Initial Margin’ and ‘Maintenance Margin’ in Derivatives

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.