Maintenance Margin
The minimum account equity required to keep an existing futures position open — typically 75-90% of initial margin; falling below triggers a margin call.
What is Maintenance Margin?
Maintenance margin is the minimum equity level your account must maintain while a futures position is open. It’s set lower than initial margin (the level required to OPEN a position) — typically 75-90% of initial. If your account equity drops below maintenance margin, the broker issues a margin call requiring you to deposit additional capital or close positions.
The math: when you open a position, your account equity equals (cash) – (initial margin posted). If the position moves against you, unrealized loss reduces your equity. When equity falls below maintenance margin, the broker says “you need more capital or fewer positions to continue holding this trade.”
For prop firm traders, maintenance margin doesn’t apply directly — the firm handles all margin mechanics. But the prop firm’s drawdown rule serves the EXACT same function: a minimum equity level (the trailing or static floor) that, when breached, forces position closure. The terminology differs; the mechanic is identical.
How Maintenance Margin works
Maintenance margin example (personal account):
- Trader account: $20,000 cash
- Buys 1 ES at 4500 (initial margin: $15,000)
- Account equity: $20,000 – $15,000 (margin posted) + position P&L
- Position drops 50 points to 4450 → -$2,500 unrealized
- Account equity: $20,000 – $15,000 + (-$2,500) = $2,500
- If maintenance margin is $13,000 → equity $2,500 + $15,000 (margin) = $17,500. Wait, this isn’t quite right.
Let me re-do this correctly:
- Account equity = total cash + unrealized P&L
- Trader: $20,000 cash, no positions yet
- Buys 1 ES (initial margin $15,000 posted as collateral, available cash now $5,000)
- Position drops 50 points → -$2,500 unrealized
- Total equity: $20,000 – $2,500 = $17,500
- Maintenance margin: $13,000
- $17,500 > $13,000 → no margin call yet
- If position drops another 90 points to 4360 → unrealized -$7,000
- Total equity: $20,000 – $7,000 = $13,000 (exactly maintenance level)
- Position drops one more tick → equity drops below $13,000 → MARGIN CALL
What happens during a margin call:
- Broker sends notification (email, dashboard alert, sometimes phone)
- Trader has limited time to respond (often hours during market hours)
- Options: deposit more cash, close some/all positions, or do nothing
- If no action, broker liquidates positions automatically to bring equity above maintenance — often at prices worse than current market
Prop firm equivalent: Trailing drawdown floor IS the maintenance margin equivalent. Drop below the floor → firm auto-closes positions. No “deposit more” option — accounts can’t be “saved” by adding capital because the firm provides the capital. The position closure is the analog of broker liquidation; the account closure is the analog of margin call resolution by force.
Worked example
Margin call recovery scenario (personal account):
- Trader at $13,500 equity with 1 ES long, maintenance margin $13,000
- Position moves further against → equity drops to $12,500
- Margin call issued
- Option A: Trader wires $2,500 to broker. Equity now $15,000 + $2,500 = $17,500. Comfortably above maintenance. Position continues.
- Option B: Trader closes 1 ES position. Initial margin returned ($15,000). Account back to $12,500 with no position. No margin call.
- Option C: Trader does nothing. Broker auto-closes after grace period (often end of session). Position fills at whatever current market is — typically worse than current bid/ask.
Same scenario on Apex $50K PA:
- Trader at $48,500 equity ($1,500 below starting balance), trailing drawdown floor at $48,000
- Position moves further against → equity drops toward $48,000
- No “margin call” notification — Apex monitors continuously
- Equity hits $47,990 (below $48,000 floor)
- Apex auto-closes the position. Account marked failed. Trader receives email. No recovery option — must purchase new evaluation.
The difference: personal accounts allow recovery by adding capital. Prop firm accounts do not — the firm has already capitalized the account.
Maintenance Margin vs related concepts
Side-by-side comparison of Maintenance Margin against the most commonly confused alternatives.
| Concept | Definition | Category |
|---|---|---|
| Maintenance Margin this term | The minimum account equity required to keep an existing futures position open — typically 75-90% of initial margin; falling below triggers a margin call. | Futures Mechanics |
| Margin | The capital deposit required to open and hold a futures position — set by the exchange (initial margin) and broker (day-trade margin), typically 5-15% of contract notional value. | Futures Mechanics |
| Day-Trading Margin | A reduced margin requirement set by brokers (not exchanges) for positions opened and closed within the same trading session — typically 5-10% of overnight initial margin. | Futures Mechanics |
| Max Drawdown | The total dollar amount your account can lose from its highest point (or starting balance) before the account is automatically closed. | Rules & Risk |
| Futures Contract | A standardized agreement to buy or sell a specific quantity of an underlying asset at a predetermined price on a specified future date — the foundational instrument of futures markets. | Futures Mechanics |
Why traders fail Maintenance Margin
Treating maintenance margin as the position size limit. Maintenance margin is the EXIT trigger, not the entry sizing constraint. If your account is barely above maintenance, you should reduce position, not consider this normal operating territory.
Ignoring margin calls assuming the position will recover. Brokers don’t issue calls for fun. The math says you’re in trouble. Either deposit capital or close positions — don’t wait for forced liquidation at worse prices.
Conflating prop firm drawdown with personal account margin. Prop firms have NO margin call recovery mechanism. Hit drawdown, account closes. Don’t trade prop accounts assuming you can “add capital to save it” — there’s no such option.
Not knowing your broker’s specific maintenance levels. Maintenance margin isn’t standardized across brokers. AMP Futures may use 90% of initial; NinjaTrader Brokerage may use 75%. Verify your broker’s specific levels before trading.
Frequently asked questions about Maintenance Margin
What is maintenance margin?
The minimum account equity required to keep an existing futures position open. Set lower than initial margin (typically 75-90% of initial). If account equity drops below maintenance, broker issues margin call requiring additional capital or position closure.
What's a margin call?
A demand from your broker to deposit additional capital or close positions when your account equity has dropped below maintenance margin. You typically have hours during market hours to respond. Failure to respond results in broker auto-liquidating positions.
How is maintenance margin different from initial margin?
Initial margin = capital required to OPEN a position. Maintenance margin = minimum equity to KEEP it open. Maintenance is typically 75-90% of initial. The gap exists so positions can have minor adverse moves without immediate margin calls.
Do prop firm accounts have margin calls?
No. Prop firms don't use margin call mechanics — they use drawdown rules instead. If you breach the drawdown floor, the firm auto-closes the position (and often the account). There's no "deposit more capital" recovery option since the firm provides the capital.
What happens if I ignore a margin call?
The broker auto-liquidates positions to bring your account back above maintenance margin. The liquidation typically happens at market price during the response grace period — often at less favorable prices than current bid/ask. After liquidation, you're left with the residual account equity (typically much less than before).