Stock Market Investors » Glossary of Stock Terms » What is a Maintenance Margin?

What is a Maintenance Margin?

When you open an account a minimum amount of equity is required to be kept in it, which is generally referred to as maintenance margin. The level that should be maintained in your account depends from one broker to another. Most brokerages require your maintenance margin to be not less than 25% of the total market value of the securities in the margin account; however many have higher requirements of 30-40%.

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