Futures mechanics

    What is Maintenance Margin and what happens immediately when account equity drops below this threshold?

    By Easy Money Scanner · Educational reference · Not investment advice

    The short answer

    Maintenance margin is the minimum equity level that must be sustained; falling below it triggers a margin call for additional funds.

    How it works

    Exchanges and brokers monitor equity continuously; breaches can prompt forced liquidation of positions without prior trader notice in some cases.

    An example

    Equity below the maintenance threshold prompts a broker margin call or auto-liquidation.

    Risk & limitations

    Automatic liquidation can occur quickly, sometimes without advance warning to the trader.

    Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

    Sources & further reading

    Easy Money Scanner provides informational tools using machine learning. This is not investment advice. Trading involves substantial risk of loss. Read full disclaimer →