What Is Initial Margin and Maintenance Margin in Futures Trading? ⎊ Path

What Is Initial Margin and Maintenance Margin in Futures Trading?

Initial margin is the amount of collateral a trader must deposit to open a futures position, acting as a performance bond. Maintenance margin is the minimum amount of equity required to keep the position open.

If the account equity falls below the maintenance margin, the trader receives a margin call, requiring additional funds to be deposited or the position will be liquidated.

What Is the Difference between “Initial Margin” and “Maintenance Margin” in Futures Trading?

Distinguish between Initial Margin and Maintenance Margin in Futures Trading

What Is the Difference between Initial Margin and Maintenance Margin in Derivatives Trading?

What Is the Purpose of ‘Maintenance Margin’ Relative to ‘Initial Margin’?

How Does the Concept of “Initial Margin” Differ from “Maintenance Margin” in Futures Trading?

What Is the Difference between Initial and Maintenance Margin?

What Is Initial Margin and Maintenance Margin in the Context of Derivatives?

Define ‘Initial Margin’ versus ‘Maintenance Margin’