Which one of the following is the definition of maintenance margin?
A)initial amount required when a futures contract is either bought or sold
B)maximum amount of margin permitted for a futures account
C)minimum margin required in a futures account at all times
D)the additional amount requested in a margin call
E)the minimum amount needed to reverse a futures position

Question

Quizplus · Accepted Answer

Maintenance margin is the minimum amount of margin required in a futures account at all times. It is the amount of money that must be maintained in a futures trading account in order to hold a position. If the account falls below the maintenance margin level, a margin call will be issued to bring the account back up to the required minimum level.

Which One of the Following Is the Definition of Maintenance