What Is the ‘Maintenance Margin’ Level in Derivatives Trading?
The maintenance margin is the minimum amount of equity (collateral) that must be maintained in a margin account after a trade has been executed. It is set below the initial margin level.
If the account's equity falls below this maintenance level due to adverse market movements, the trader will receive a margin call, requiring them to deposit additional funds to bring the account back up to the initial margin level.
Glossar
Maintenance Level
Margin ⎊ The maintenance level represents the minimum equity required in a leveraged trading account to keep a position open.
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.