Glossary

What is Maintenance margin

The minimum margin the exchange requires you to hold under a position: when margin plus accumulated losses falls to that level, liquidation begins.

How it works

Example

A $10,000 position at 10× leverage, $1,000 margin, a 0.5% maintenance rate = $50. Liquidation comes when the loss reaches 1,000 − 50 = $950, a 9.5% move against you.

Common mistake

Expecting liquidation only after the whole margin is gone: the exchange closes earlier, at the maintenance level, and takes a fee on top.

Read next

Frequently asked questions

Where can I learn Maintenance margin step by step?
In the Trading OS Academy: “Leverage is sizing, not greed”.
What is Maintenance margin related to?
Margin; Liquidation; Bankruptcy price; Leverage.

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