What Is the Difference between Maintenance Margin and Initial Margin?
Initial margin is the minimum amount of capital required to open a leveraged position. Maintenance margin is the minimum amount of capital required to keep the position open.
If the account equity drops below the maintenance margin level due to losses, a margin call is issued. The initial margin is always higher than the maintenance margin.
Glossar
Initial Margin
Collateral ⎊ Initial margin represents the equity a trader must deposit with a broker or exchange as a good faith commitment to cover potential losses arising from derivative positions, notably within cryptocurrency markets.
Maintenance Margin
Collateral ⎊ Within cryptocurrency derivatives and options trading, the maintenance margin represents the minimum equity a trader must maintain in their account to cover potential losses.
Maintenance Margin Level
Collateral ⎊ The maintenance margin level, within cryptocurrency derivatives and options trading, represents the minimum equity a trader must maintain in their account relative to their margin requirements.