Maintenance Margin Level

The maintenance margin level is the specific percentage of the total position value that must be held as equity to keep the position active. It is set by the exchange or protocol to protect against price volatility and ensure that the position can be liquidated before the account equity becomes negative.

This level is a crucial parameter in the margin engine's risk assessment. If a trader's account drops to this level, they receive a warning or are immediately liquidated.

It is essentially the "safety line" for the leveraged trade. Traders must calculate this level based on their position size and the specific rules of the platform they are using.

Understanding this level helps in determining how much leverage is truly safe to use. It is a vital component of disciplined trading in high-leverage environments.