Maintenance Margin

Maintenance margin is the minimum amount of equity an investor must maintain in their margin account after a purchase has been made. It is typically set lower than the initial margin requirement, which is the percentage of the purchase price of the securities that the investor must have in their account to initiate the trade. If the account balance falls below this level due to a decline in the value of the securities, the investor will receive a margin call, requiring them to deposit more funds or sell assets to cover the shortfall. Falling below the maintenance margin can lead to the forced liquidation of assets by the brokerage to bring the account back to the required level.
While trading on margin can amplify gains, it can also amplify losses, potentially leading to owing more money than initially invested if the investments perform poorly. Always use margin trading with caution and full understanding of the risks involved.