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Which Margin Is Always a Smaller Percentage of the Total Contract Value?

The maintenance margin is always a smaller percentage of the total contract value than the initial margin. The initial margin is the deposit to open the trade.

The maintenance margin is the lower threshold required to keep the trade open. This difference provides a buffer for the trader, allowing the market to move against the position before liquidation is triggered.

How Does the ‘Liquidation Price’ Change with Varying Leverage Levels?
Why Is the Maintenance Margin Typically Lower than the Initial Margin?
What Is the Role of Initial Margin in Counterparty Risk Management?
What Is the Function of the “Independent Amount” in a CSA?