Maintenance margin refers to the minimum margin amount that investors must maintain in their positions or accounts to continue holding those positions. When unrealized losses cause the position margin or account margin to fall below the required maintenance margin level, a liquidation will be triggered. Maintenance margin is crucial for sustaining trading positions.
Since investors hold a larger contract value (position value + order value), as the contract value rises to a specific level, the required maintenance margin will also increase by a fixed percentage. Each trading pair has its own maintenance margin base rate, which is adjusted according to changes in risk limit levels.
The maintenance margin rate (MMR) for each position is determined using a tier-based calculation method based on the margin level of the position value. Any excess amount beyond a specific tier will be calculated according to the MMR of the new tier.
Calculation formula: Position Value = Contract Quantity x Average Entry Price
Maintenance Margin (MM) = (Position Value x MMR) - Maintenance Margin Deduction
Note:
The MM deduction for the nth tier = Risk Limit of the (n-1)th tier x (Difference between the MMR of the nth tier and the (n-1)th tier) + MM deduction of the (n-1)th tier
The required MMR and maintenance margin deduction amounts for each risk limit tier can be found in the parameter table.