Maintenance margin and initial margin are terms used in futures and options trading. Initial margin refers to the minimum amount of money or collateral required to open a new position, while maintenance margin is the minimum amount of money or collateral required to keep the position open.

Once a trader has opened a position, they are required to maintain the maintenance margin level or risk having their position liquidated by the broker. The initial margin is typically higher than the maintenance margin, as it serves as a buffer to protect the broker from potential losses if the position moves against the trader.

In summary, the initial margin is the initial investment required to open a position, while the maintenance margin is the minimum investment required to keep the position open. Traders should be aware of both margin levels and ensure they have sufficient funds or collateral to maintain their positions.

The initial margin and maintenance margin are key concepts in leveraged trading.

Initial margin refers to the minimum amount of capital a trader must deposit to open a position. It acts as collateral to cover potential losses and is set by exchanges or brokers. The initial margin is usually a percentage of the total value of the position.

Maintenance margin, on the other hand, is the minimum balance a trader must maintain in their account to keep a position open. If the account balance falls below this threshold due to losses, a margin call is triggered, requiring the trader to deposit additional funds or close positions.

The initial margin is required to enter a trade, while the maintenance margin ensures ongoing collateral for potential risks.