Maintenance Margin in Forex
A clear definition of Maintenance Margin, with practical context for reading markets and making better trading decisions.
Definition
Definition
Maintenance margin is the minimum amount of margin or account equity that must be maintained to keep a leveraged position open under a product's rules. Falling below the required level can lead to warnings, restrictions, or forced position reductions.
How It Works
Leverage and margin describe exposure and collateral, not free buying power. A relatively small amount of account equity can support a much larger notional position, which means ordinary market moves can have a large effect on the account.
Why It Matters
Understanding the term helps you recognize account-pressure warnings before placing a live trade. Broker thresholds differ, so learners should read the platform's own margin rules instead of assuming one universal percentage.
Key Takeaway
Maintenance margin is the minimum amount of margin or account equity that must be maintained to keep a leveraged position open under a product's rules.
Practical forex example
Why Maintenance Margin matters
Understanding Maintenance Margin helps traders interpret market information, plan decisions, and manage risk with more context.
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