The initial margin is the minimum amount of margin that investors must maintain as a percentage of the stock's value without receiving a margin call.

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The initial margin is the percentage of the purchase price of securities (that can be bought on margin) that the investor must pay for with his/her own cash or marginable securities; it is not about maintaining a minimum amount to avoid a margin call, but rather the initial requirement to enter into the position. The maintenance margin is the minimum amount that must be maintained to avoid a margin call.

The Initial Margin Is the Minimum Amount of Margin That