What Is the Initial Margin and How Does It Differ from the Maintenance Margin?
Initial margin is the amount of collateral a trader must post to open a leveraged position. It is the first required deposit.
Maintenance margin is the minimum amount of collateral required to keep the position open after it has been established. The initial margin is always greater than or equal to the maintenance margin.
The difference acts as a safety buffer against market fluctuations before liquidation is triggered.
