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

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## 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](https://learn.greeks.live/path/differentiate-between-initial-margin-and-maintenance-margin/)

- [What Is ‘Initial Margin’ and ‘Maintenance Margin’ in the Context of Perpetual Swaps?](https://learn.greeks.live/path/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?](https://learn.greeks.live/path/what-is-the-difference-between-initial-margin-and-maintenance-margin-in-futures-trading/)

- [What Is the Difference between ‘Initial Margin’ and ‘Maintenance Margin’?](https://learn.greeks.live/path/what-is-the-difference-between-initial-margin-and-maintenance-margin/)

- [What Is ‘Initial Margin’ and ‘Maintenance Margin’ in Futures Trading?](https://learn.greeks.live/path/what-is-initial-margin-and-maintenance-margin-in-futures-trading/)

- [Distinguish between Initial Margin and Maintenance Margin in Futures Trading](https://learn.greeks.live/path/distinguish-between-initial-margin-and-maintenance-margin-in-futures-trading/)

- [Explain the Term ‘Maintenance Margin’ in the Context of Leveraged Derivatives Trading](https://learn.greeks.live/path/explain-the-term-maintenance-margin-in-the-context-of-leveraged-derivatives-trading/)

- [Explain the Difference between ‘Initial Margin’ and ‘Maintenance Margin’ in Derivatives](https://learn.greeks.live/path/explain-the-difference-between-initial-margin-and-maintenance-margin-in-derivatives/)

## Glossar

### [Initial Margin](https://learn.greeks.live/area/initial-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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.

## Discover More

### [What Is the Purpose of 'Maintenance Margin' and When Is a Margin Call Triggered?](https://learn.greeks.live/path/what-is-the-purpose-of-maintenance-margin-and-when-is-a-margin-call-triggered/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Purpose of 'Maintenance Margin' and When Is a Margin Call Triggered?](https://learn.greeks.live/wp-content/uploads/2025/10/Reflective-Substrate-Interaction-with-Magnetic-Coil-Assembly-Simulating-Decentralized-Exchange-Liquidity-Pools.webp)

Maintenance margin is the minimum required equity; a margin call is triggered when the account falls below it.

### [What Is the 'Maintenance Margin' Level in Derivatives Trading?](https://learn.greeks.live/path/what-is-the-maintenance-margin-level-in-derivatives-trading/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the 'Maintenance Margin' Level in Derivatives Trading?](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Cryptocurrency-Option-Settlement-Stack-Visualization-of-Dynamic-Strike-Price-Convergence-Mechanisms.webp)

Maintenance margin is the minimum equity level required in a margin account before a margin call is triggered.

### [Define 'Initial Margin' and 'Maintenance Margin.'](https://learn.greeks.live/path/define-initial-margin-and-maintenance-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Define 'Initial Margin' and 'Maintenance Margin.'](https://learn.greeks.live/wp-content/uploads/2025/10/Teal-Blue-Granular-Texture-Encapsulating-a-Spherical-Quantum-Refraction-Mechanism-in-a-Precision-Bearing-Track.webp)

Initial: amount to open a position. Maintenance: minimum equity to keep a position open before a margin call.

### [How Is the Maintenance Margin Level Typically Calculated for a Short Option?](https://learn.greeks.live/path/how-is-the-maintenance-margin-level-typically-calculated-for-a-short-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is the Maintenance Margin Level Typically Calculated for a Short Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Structure-High-Frequency-Algorithmic-Trading-Mechanism-Visualization.webp)

A complex formula based on underlying price, strike price, and premium, designed to ensure sufficient collateral to cover potential losses.

### [Explain the Main Difference between Reg a and Reg D Exemptions](https://learn.greeks.live/path/explain-the-main-difference-between-reg-a-and-reg-d-exemptions/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Explain the Main Difference between Reg a and Reg D Exemptions](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Digital-Asset-Volatility-Surface-Intersection-Conceptualizing-Perpetual-Futures-Execution.webp)

Reg A allows smaller public offerings to non-accredited investors; Reg D allows unlimited private offerings, mainly to accredited investors.

### [Explain the Difference between "Delta-Neutral" and "Gamma-Neutral" Trading Strategies in Options](https://learn.greeks.live/path/explain-the-difference-between-delta-neutral-and-gamma-neutral-trading-strategies-in-options/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Explain the Difference between "Delta-Neutral" and "Gamma-Neutral" Trading Strategies in Options](https://learn.greeks.live/wp-content/uploads/2025/10/Stochastic-Volatility-Surface-Mapping-Across-Decentralized-Exchange-Hedging-Mechanisms.webp)

Delta-neutral means the portfolio value is stable for small price moves; gamma-neutral means the portfolio's delta is stable, making the hedge more robust.

### [How Does an Exchange Calculate the Maintenance Margin for Isolated Vs. Cross Margin?](https://learn.greeks.live/path/how-does-an-exchange-calculate-the-maintenance-margin-for-isolated-vs-cross-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does an Exchange Calculate the Maintenance Margin for Isolated Vs. Cross Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetrical-Portfolio-Rebalancing-Dynamics-Illustrated-Through-Hedging-Instrument-Balance-Modeling.webp)

Isolated margin is position-specific; cross margin is calculated based on the aggregate risk of all positions against the total account balance.

### [What Is the Relationship between Leverage and the Initial Margin Percentage?](https://learn.greeks.live/path/what-is-the-relationship-between-leverage-and-the-initial-margin-percentage/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Relationship between Leverage and the Initial Margin Percentage?](https://learn.greeks.live/wp-content/uploads/2025/10/Materiality-Analysis-of-Imperfect-Hedging-Instruments-Across-Blockchain-Settlement-Layers.webp)

They are inversely related; Initial Margin percentage is 1 divided by the leverage ratio, e.g. 50x leverage is 2% margin.

### [What Is "Initial Margin" and "Maintenance Margin" in Perpetuals?](https://learn.greeks.live/path/what-is-initial-margin-and-maintenance-margin-in-perpetuals/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is "Initial Margin" and "Maintenance Margin" in Perpetuals?](https://learn.greeks.live/wp-content/uploads/2025/10/Exotic-Derivatives-Hedging-Utilizing-A-Smooth-Ivory-Sphere-Against-Teal-And-Indigo-Substrates.webp)

Initial margin is the opening collateral; maintenance margin is the minimum required to avoid automatic liquidation of the position.

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