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Initial Margin vs Maintenance Margin

When trading perpetual contracts, there are two important margin requirements you’ll encounter:

  • Initial Margin

  • Maintenance Margin

Understanding the difference can help you manage your positions more effectively.


Initial Margin

Initial margin is the minimum amount required to open a new position.

The amount depends on your position size and the leverage you choose.

Higher leverage generally requires less initial margin, while lower leverage requires more.

Maintenance Margin

Maintenance margin is the minimum amount of equity required to keep your position open.

As your position gains or loses value, your available equity changes.

If your equity falls below the maintenance margin requirement, your position becomes eligible for liquidation.


Why Are Both Important?

Initial margin allows you to open a trade.

Maintenance margin determines whether that trade can remain open.

Meeting the initial margin requirement does not guarantee that your position will stay open if the market moves against you.


Frequently Asked Questions

Can my position be liquidated even after opening successfully?

Yes.

A position that met the initial margin requirement can still be liquidated if its equity later falls below the maintenance margin requirement.

Can I see my margin requirements before opening a trade?

Yes. The required margin is displayed before you confirm your order.

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