Glossary entry
Maintenance margin is the minimum equity required to keep a margined position or account open under applicable rules. It differs from the initial margin needed to establish exposure. If losses reduce equity below the required amount, the broker or clearing framework may require more collateral or reduce positions, sometimes without advance notice.
Illustrative example
An account has equity of 3,000 against a maintenance requirement of 2,500. A loss of 700 leaves a shortfall that may require prompt action.
What to consider
Margin thresholds and liquidation procedures vary. Do not assume a margin call will provide time to deposit additional funds.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.