Margin maintenance contracts normally represent what percent of the initial margin?

Name: Margin maintenance contracts normally represent what percent of the initial margin?
Brand: Quizplus
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Quizplus · Accepted Answer

Margin maintenance contracts typically represent approximately 60-80% of the initial margin. This is designed to ensure that there is sufficient margin to cover any potential losses or fluctuations in the value of the underlying asset. This also helps to ensure that the investor can meet their obligations and avoid a margin call.

Margin Maintenance Contracts Normally Represent What Percent of the Initial