Maintenance margin


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Related to Maintenance margin: margin call

Maintenance margin

For derivative contracts, when the margin drops below the maintenance margin, the investor gets a margin call. The investor must post margin to the initial margin (which is higher than the maintence) or the contract will be liquididated.

Maintenance Margin

The money or securities an investor keeps in a margin account in order to be able to borrow from a brokerage for short sales or other purposes. The maintenance is kept as collateral until the brokerage calls the margin and the client pays back what is owed. FINRA requires that the maintenance kept must be at least 25% of the amount borrowed, while some brokerages require maintenances of up to 50%. See also: Restricted account.
References in periodicals archive ?
The decrease was partially offset by stronger lease and contract maintenance margins in Ryder's domestic and United Kingdom operations and a reduction in overhead costs.
9 million last year, reflecting the favorable change in revenue mix towards software licenses, together with improving services and maintenance margins.

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