Put more cash into the account or sell off some of. It helps prevent accounts from falling into a negative. It means that the brokerage firm notifies the trader that he must do one of two things:
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From the perspective of a broker, the maintenance margin is a risk mitigation tool. This article will cover the question of what maintenance income (margin) is, what differences it has with the initial margin and on. Key takeaways maintenance margin is the minimum equity an investor must maintain in a margin account, typically set at 25% of the.
Maintenance margin implies the minimum cash needed for a margin trade to stay open.
Therefore, this margin is used and is applicable only in the.
