Explain the Term 'Maintenance Margin' in the Context of Leveraged Derivatives Trading ▴ Learn

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

Maintenance margin is the minimum amount of equity (collateral) a trader must hold in their margin account to keep a leveraged position open. If the account equity falls below this level due to adverse price movement, the trader will receive a margin call and must deposit additional funds or face automatic liquidation.

Define ‘Initial Margin’ and ‘Maintenance Margin’ in the Context of Futures Trading

Distinguish between Initial Margin and Maintenance Margin in Futures Trading

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

Distinguish between Initial Margin and Maintenance Margin