Maintenance Margin

Initial Margin

In terms of leveraged trading, it alludes to the minimal amount of collateral needed to open a transaction.

However, the actual transaction charge will be paid when the order is completed and will be determined based on the actual transaction price. It should be noted that the actual order cost will be reserved for the open taker transaction fee. If any money is left over after all orders have been fulfilled and the actual fees have been paid, it will be immediately added back to the available assets.

Initial Margin Ratio = 1/Leverage

Maintenance Margin

It is the minimal margin needed for a trader to keep their position open. A position will be forced to close if the margin level employed for it is less than the maintenance margin level.

Maintenance Margin = Maintenance Margin Ratio x Opening Position Value

Maintenance Margin Ratio is the minimum margin ratio required by the holder to maintain the current position. When the margin ratio is less than or equal to the holder's current required margin ratio, the forced closing of the position will be triggered.

Margin Ratio = Account Equity / Open Position Value