- maintenance margin
- The minimum level at which the equity in a futures account must be maintained. If the equity in an account falls below this level, a margin call will be issued, and funds must be added to bring the account back to the initial margin level. The maintenance margin level generally is 75% of the initial margin requirement. The CENTER ONLINE Futures Glossary————The dollar amount required to be kept at the OCC throughout the life of an option contract; percentage of the dollar amount of securities that must always be kept as margin. Bloomberg Financial Dictionary————See maintenance performance bond. Chicago Mercantile Exchange Glossary————An alternative method of margining often used in the United States. When a position is opened, initial margin is called in the usual way and is credited to a maintenance margin account. However, variation margin debits and credits are not payable/paid daily but are debited and credited directly against the maintenance margin account. When the balance in the account falls below a predetermined level (normally around two thirds of the initial margin payment), the customer must fund the account back up to the initial margin level. Such a system is also sometimes operated by brokers in the UK for their customers. Dresdner Kleinwort Wasserstein financial glossary————The minimum margin which an investor must keep on deposit in a margin account at all times. Exchange Handbook Glossary
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The lowest balance of funds that a clearing house or brokerage firm will allow a counterparty, or the person on the other side of a deal, when trading on margin.► See also Margin, Margin Trading.
Financial and business terms. 2012.