Margin requirement refers to the amount of capital a trader must deposit to open and maintain a leveraged position. It is set by the exchange or broker and varies by asset, leverage level, and regulatory jurisdiction.
Types of Margin Requirements
Initial Margin Requirement
The minimum collateral needed to open a new position. Inversely proportional to leverage:
- 2x leverage → 50% initial margin
- 10x leverage → 10% initial margin
- 100x leverage → 1% initial margin
Maintenance Margin Requirement
The minimum equity needed to keep a position open. Lower than initial margin. Falling below triggers liquidation.
Margin Requirements by Market
| Market | Typical Requirement | Regulator |
|---|
| US Stocks | 50% initial, 25% maintenance | FINRA/Fed |
| EU Forex | 3.33% (30x) for majors | ESMA |
| EU Crypto CFD | 50% (2x) | ESMA |
| Crypto (offshore) | 0.5-10% | Exchange policy |