How Does the Margin Requirement in Traditional Futures Trading Relate to the Liquidation Ratio?

Both the margin requirement in futures and the liquidation ratio in CDPs serve as risk management tools. Initial margin is the capital required to open a futures position, similar to the initial collateral.

Maintenance margin is the minimum equity level required to keep the position open, which is analogous to the liquidation ratio's threshold. Falling below the maintenance margin triggers a margin call, similar to a CDP liquidation.