maintenance margin

**maintenance margin**

The maintenance margin is the minimum amount of equity that must be maintained in a margin trading account after a purchase has been made. It acts as a safety threshold set by brokers to ensure that traders have sufficient funds to cover potential losses. If the account equity falls below this level due to market fluctuations, a margin call is triggered, requiring the trader to deposit additional funds or sell assets to meet the required margin. Understanding maintenance margin is crucial for managing risk effectively in leveraged trading.