Maintenance Margin
Maintenance margin is the minimum collateral or account equity a leveraged position must maintain to remain open under a venue's rules.
✦ Key Insight
It explains why liquidation can occur before the trader's collateral reaches zero.
✕ Common Misconceptions
Rules differ by product, risk tier, portfolio mode, and exchange.
Detailed Explanation
In Practice
Dig Deeper
Isolated Margin
Isolated margin is a margin mode in which collateral allocated to one leveraged position is separated from the rest of an account's available collateral.
Margin
Margin is capital deposited or maintained to support a leveraged trading position.
Mark Price
Mark price is a fair-value reference used by many derivatives venues to calculate unrealized profit and loss and liquidation risk.
Liquidation
Liquidation is the forced reduction or closure of a leveraged or collateralized position when required risk or collateral thresholds are breached.
Leverage
Leverage allows a trader to control a position larger than the capital committed to support it.