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What is the difference between initial margin and maintenance margin?

April 26, 2017difference initial maintenance margin

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What is the difference between initial margin and maintenance margin?

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Initial margin is the “good faith” deposit required to buy or sell a futures contract. The maintenance margin is the level of deposit that must be maintained before a margin call is generated, assuming there are no excess funds available. The maintenance margin level is approximately 75% of the initial margin and is not in addition to the initial margin.