This article explains the role and mechanism of Maintenance Margin in futures trading.
π What Is Maintenance Margin?
Maintenance Margin is the minimum amount of margin required to maintain an open position.
If your margin balance falls below this level:
β οΈYou may be required to add additional funds (Margin Call), or
β οΈYour position may be forcibly liquidated
Note: In most cryptocurrency exchanges, forced liquidation is applied instead of margin calls.
β Difference Between Initial Margin and Maintenance Margin
π Initial Margin
β The margin required to open a new position
π Maintenance Margin
β The minimum margin required to keep the position open
π Characteristics of Maintenance Margin
Maintenance Margin is not always a fixed value.
It may change depending on:
π Market price
π Position size
π Account collateral balance
β οΈWhen Maintenance Margin Is Not Met
If your margin balance falls below the maintenance margin requirement:
π The position may no longer be sustainable
π Forced liquidation may occur
π‘ Key Points
To maintain positions safely, it is important to monitor:
β
Margin balance
β
Liquidation price
β
Position size
β
Market conditions
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