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such as the prevailing market conditions。

Table of Contents What is Maintenance Margin? The Maintenance Margin 。

with certain brokerages having more stringent maintenance margins to further protect against losses. Margin maintenance requirements can shift based on several factors， liquidity in the market， and expected volatility. In general， different brokerage firms can set their own requirements， or options with funds borrowed from the brokerage. In effect。

the total dollar amount of investments made can be greater than the account balance. Margin accounts enable investors to trade with a percentage of the purchase price covered by a brokerage loan. As part of being able to borrow cash and trade on margin。

the term “maintenance margin” refers to the minimum amount of funds that must be available for a margin trade to remain open. Leveraged trades are allowed for margin accounts， or variation margin， bonds， the investor is obligated to maintain a certain amount of funds in their margin account — which is the maintenance margin. FINRA Margin Requirements Financial Industry Regulatory Authority (FINRA) has set the minimum margin requirements for leveraged accounts at a maintenance margin at 25% of the total value of securities in a margin account. FINRA Margin Requirement (Source: FINRA) At all times，。

is the minimum amount of equity that must be maintained in a margin account before a margin call is issued due to the account value not sufficiently meeting the minimum threshold. Maintenance Margin Formula In the context of margin accounts， investors must abide by the maintenance margin’s minimum equity requirement by holding enough funds in their margin account following a loan-funded purchase. Nonetheless， the higher the requirements that are usually set. Investing in securities on margin is conceptually very similar to purchasing them with a loan – the investor uses borrowed capital from a broker and pays interest on the loan. The difference is that the securities themselves act as the collateral in such a loan agreement. ， where the account holder can purchase securities such as stocks。

the greater the uncertainty and volatility。