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How Does the Maintenance Margin Level Affect the Required Collateral for a Position?

The maintenance margin level is the minimum collateral required to keep a position open. A lower maintenance margin means less collateral is required, allowing the trader to use higher leverage and potentially risking a faster liquidation.

A higher maintenance margin requires more collateral, reducing leverage and providing a larger buffer against adverse price movements.

What Is the Difference between ‘Initial Margin’ and ‘Maintenance Margin’?
Explain the Difference between ‘Initial Margin’ and ‘Maintenance Margin’ in Derivatives
Why Is Maintenance Margin Lower than Initial Margin?
Define “Initial Margin” and “Maintenance Margin” in the Context of Derivatives Trading