What Is 'Initial Margin' and 'Maintenance Margin' in the Context of Perpetual Swaps? ⎊ Path

What Is ‘Initial Margin’ and ‘Maintenance Margin’ in the Context of Perpetual Swaps?

Initial margin is the minimum amount of capital required to open a leveraged perpetual swap position. It serves as collateral to cover potential losses.

Maintenance margin is the minimum amount of capital required to keep the position open. If the account equity falls below the maintenance margin, the trader will receive a margin call, and failure to add funds will lead to liquidation.

Differentiate between ‘Initial Margin’ and ‘Maintenance Margin’

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

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

How Does “Initial Margin” Differ from “Maintenance Margin”?

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

Distinguish between Initial Margin and Maintenance Margin

How Does the Initial Margin Differ from the Maintenance Margin?

Define “Initial Margin” and “Maintenance Margin.”