Why Is the Maintenance Margin Typically Lower than the Initial Margin?
The initial margin is set higher to ensure the trader has a sufficient capital buffer to absorb expected short-term price volatility without immediately falling into a deficit. The maintenance margin is lower because it represents the absolute minimum equity required to sustain the position, not the initial risk buffer.
The difference between the two is the "safety cushion" designed to give the trader time to meet a margin call before forced liquidation.
