Initial margin vs maintenance margin
Initial margin is the deposit to open a position; maintenance margin is the floor your account must stay above to keep it. The gap between them is how far the price can move against you, and the liquidation price comes from the maintenance level. It is the first number to compute, in Module 3.
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In the help centreSee how leverage and margin work on MochatradeRelated terms
- Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…
- Negative balance protectionNegative balance protection means you cannot lose more than the money in your account, even when a gap jumps past your…
- Leverage in tradingLeverage is controlling a position bigger than the money you put up. At 5x, ₹10,000 of margin controls ₹50,000, so a…
- Leverage ratioThe leverage ratio is position value divided by margin: ₹50,000 on ₹10,000 is 5x. One over the ratio is how far the…
- Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…
- Cross marginCross margin uses your whole balance as margin for every open position, so a winner props up a loser and liquidation…
Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.