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- This topic has 2 replies, 2 voices, and was last updated Apr-212:54 pm by
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Up3
When the margin falls below the maintenance margin, should it be brought back to the maintenance margin, or initial margin?
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Up0
The initial margin is the amount a trader must deposit with their broker to initiate a trading position.
The maintenance margin is the amount of money a trader must have on deposit in their account to maintain their position. This is typically lower than the initial margin (about 50-75%).
So when the margin falls below the maintenance margin, the investor faces a margin call. The investor needs to top up with additional funds or sell off to meet the maintenance margin requirement, not initial margin.
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Up0
thank you for the clarification
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