Maintenance Margin
19 hours agoThe maintenance margin is the amount of funds that must be available to keep a margin trade active. It is also referred to as the variation margin or "free margin."
The purpose of the maintenance margin is to ensure that you have sufficient funds in your account to cover the current value of the position at all times and to account for any ongoing losses.
You need an adequate maintenance margin to "maintain" your open positions. This margin is one of the two types required for executing a leveraged trade.
The other type is the initial margin (or deposit margin), which is the amount necessary to open a new position. To keep a leveraged position open, a specific amount of funds must be deposited and maintained in your account.
If your position begins to incur losses, your deposit may no longer suffice to keep the trade open. In such cases, your broker will request that you increase the funds in your account, which is known as a margin call.
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