What Is ‘Maintenance Margin’ and How Is It Calculated?
Maintenance margin is the minimum amount of equity required to keep a leveraged position open. If the account equity falls below this level, a margin call or liquidation is triggered.
It is typically a percentage of the notional value of the position. Exchanges calculate it based on the position size and the risk associated with the underlying asset.
Larger positions often have higher maintenance margin requirements due to greater systemic risk.
