What Is ‘Maintenance Margin’ and How Does It Relate to Liquidation?
Maintenance margin is the minimum amount of collateral a trader must maintain in their account to keep a leveraged position open. It is a lower threshold than the initial margin.
If the account's equity falls below the maintenance margin level, the position is automatically liquidated by the exchange's risk engine. This mandatory minimum ensures that there is a buffer to cover potential trading losses and liquidation fees before the account balance hits zero.
