Maintenance Margin

Minimum equity to maintain margin positions

What is Maintenance Margin?

Maintenance Margin The minimum equity required in a margin account to maintain existing positions. If account equity drops below maintenance margin due to adverse moves, a margin call is triggered. For short options, maintenance margin is recalculated daily based on the underlying price and option value. Defined-risk spreads have fixed maintenance requirements.

Complete Definition

The minimum equity required in a margin account to maintain existing positions. If account equity drops below maintenance margin due to adverse moves, a margin call is triggered. For short options, maintenance margin is recalculated daily based on the underlying price and option value. Defined-risk spreads have fixed maintenance requirements.