What is margin maintenance requirement?

The margin maintenance requirement is the minimum amount of funds traders need to have on their accounts when trading on margin. When the value of the trader’s capital falls below the minimum required amount, he/she will receive a margin call. After receiving a margin call, traders have two options. They can either deposit enough funds on their account to at least cover the margin maintenance requirement or close some or all of their trading positions. The margin maintenance requirement is determined by the margin size (leverage) and brokers’ internal policies.

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