What Is ‘Initial Margin’ and ‘Maintenance Margin’ in Futures Trading?
Initial Margin is the amount of money a trader must deposit in their margin account to open a futures position. It acts as collateral to cover potential losses.
Maintenance Margin is a lower threshold; if the account equity falls below this level due to adverse price movements, the trader receives a 'Margin Call' and must deposit additional funds to bring the account back up to the initial margin level.
