Maintenance margin vs initial margin

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.