# What Is the Difference between Maintenance Margin and Initial Margin? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

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## 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.

- [Differentiate between ‘Initial Margin’ and ‘Maintenance Margin’](https://learn.greeks.live/path/differentiate-between-initial-margin-and-maintenance-margin/)

- [How Does the Initial Margin Differ from the Maintenance Margin?](https://learn.greeks.live/path/how-does-the-initial-margin-differ-from-the-maintenance-margin/)

- [Distinguish between Initial Margin and Maintenance Margin in Futures Trading](https://learn.greeks.live/path/distinguish-between-initial-margin-and-maintenance-margin-in-futures-trading/)

- [What Is Initial Margin and Maintenance Margin in Derivatives Trading?](https://learn.greeks.live/path/what-is-initial-margin-and-maintenance-margin-in-derivatives-trading/)

- [What Is Initial Margin and Maintenance Margin in Futures Trading?](https://learn.greeks.live/path/what-is-initial-margin-and-maintenance-margin-in-futures-trading/)

- [What Is the Difference between “Initial Margin” and “Maintenance Margin” in Futures Trading?](https://learn.greeks.live/path/what-is-the-difference-between-initial-margin-and-maintenance-margin-in-futures-trading/)

- [Explain the Term ‘Maintenance Margin’ in the Context of Leveraged Derivatives Trading](https://learn.greeks.live/path/explain-the-term-maintenance-margin-in-the-context-of-leveraged-derivatives-trading/)

- [What Is the Difference between “Initial Margin” and “Maintenance Margin”?](https://learn.greeks.live/path/what-is-the-difference-between-initial-margin-and-maintenance-margin/)

## Glossar

### [Initial Margin](https://learn.greeks.live/area/initial-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/maintenance-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/maintenance-margin-level/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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.

## Discover More

### [What Is 'Margin Netting' and How Does It Reduce Initial Margin Requirements?](https://learn.greeks.live/path/what-is-margin-netting-and-how-does-it-reduce-initial-margin-requirements/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is 'Margin Netting' and How Does It Reduce Initial Margin Requirements?](https://learn.greeks.live/wp-content/uploads/2025/10/Bespoke-Algorithmic-Trading-Mechanism-Revealing-Internal-Actuator-Dynamics-For-Decentralized-Finance-Primitives.webp)

Margin netting recognizes offsetting risk between correlated positions, reducing the total initial margin requirement for a portfolio.

### [How Is the Maintenance Margin Level Typically Calculated for a Short Option?](https://learn.greeks.live/path/how-is-the-maintenance-margin-level-typically-calculated-for-a-short-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is the Maintenance Margin Level Typically Calculated for a Short Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Structure-High-Frequency-Algorithmic-Trading-Mechanism-Visualization.webp)

A complex formula based on underlying price, strike price, and premium, designed to ensure sufficient collateral to cover potential losses.

### [What Happens When a trader'S Margin Account Falls below The'maintenance Margin' Level?](https://learn.greeks.live/path/what-happens-when-a-traders-margin-account-falls-below-the-maintenance-margin-level/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Happens When a trader'S Margin Account Falls below The'maintenance Margin' Level?](https://learn.greeks.live/wp-content/uploads/2025/10/Metallic-Finishes-Representing-Layered-Structured-Collateral-in-Decentralized-Finance-Protocols.webp)

Falling below maintenance margin triggers a margin call, requiring a deposit; failure to comply leads to forced liquidation.

### [How Does the Maintenance Margin Level Compare to the Initial Margin Level?](https://learn.greeks.live/path/how-does-the-maintenance-margin-level-compare-to-the-initial-margin-level/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Maintenance Margin Level Compare to the Initial Margin Level?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Construct-Modeling-Complex-Volatility-Surface-Through-Spherical-Asset-Core.webp)

Maintenance margin is always lower than initial margin; the difference acts as a buffer for losses before a margin call.

### [How Does a Pre-Mine Differ from an Initial Coin Offering (ICO) or Initial Exchange Offering (IEO)?](https://learn.greeks.live/path/how-does-a-pre-mine-differ-from-an-initial-coin-offering-ico-or-initial-exchange-offering-ieo/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Pre-Mine Differ from an Initial Coin Offering (ICO) or Initial Exchange Offering (IEO)?](https://learn.greeks.live/wp-content/uploads/2025/10/Exposed-Mechanism-Revealing-Precision-in-Decentralized-Finance-Settlement-Layer-Mechanisms.webp)

Pre-mine is internal creation for the team; ICO/IEO is public sale for fundraising and external distribution.

### [How Does 'Initial Margin' Differ from 'Maintenance Margin' in Derivatives?](https://learn.greeks.live/path/how-does-initial-margin-differ-from-maintenance-margin-in-derivatives/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does 'Initial Margin' Differ from 'Maintenance Margin' in Derivatives?](https://learn.greeks.live/wp-content/uploads/2025/10/High-Precision-Cryogenic-Spire-Mechanism-on-Dark-Spherical-Substrate-Reflecting-Collateralized-Debt-Positions.webp)

Initial margin opens the position; maintenance margin is the minimum equity required to keep it open.

### [How Does a Trader Restore Their Margin above the Maintenance Margin Level?](https://learn.greeks.live/path/how-does-a-trader-restore-their-margin-above-the-maintenance-margin-level/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Trader Restore Their Margin above the Maintenance Margin Level?](https://learn.greeks.live/wp-content/uploads/2025/10/Gimbaled-Stabilization-Mechanism-Visualizing-Decentralized-Finance-Option-Gamma-Hedging-Dynamics.webp)

A trader restores margin by depositing more funds (adding collateral) or by partially closing the leveraged position to reduce the notional value.

### [Differentiate between 'Initial Margin' and 'Maintenance Margin'](https://learn.greeks.live/path/differentiate-between-initial-margin-and-maintenance-margin-2/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Differentiate between 'Initial Margin' and 'Maintenance Margin'](https://learn.greeks.live/wp-content/uploads/2025/10/Cosmic-Volatility-Surface-Modeling-Interplanetary-Settlement-Settlement-Structures-in-Digital-Asset-Hedging.webp)

Initial margin is the collateral needed to open a position; maintenance margin is the minimum equity needed to keep it open.

### [Is the Maintenance Margin Always Lower than the Initial Margin?](https://learn.greeks.live/path/is-the-maintenance-margin-always-lower-than-the-initial-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Is the Maintenance Margin Always Lower than the Initial Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Cryptocurrency-Exchange-Mechanism-Portfolio-Rebalancing-Configuration-Apex-Divergence.webp)

Yes, initial margin is the opening deposit, and maintenance margin is the lower threshold required to hold the position.

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**Original URL:** https://learn.greeks.live/learn/what-is-the-difference-between-maintenance-margin-and-initial-margin/
