Maintenance margin definition

Maintenance margin has a particular significance in relation to IG's platform. Here, we define maintenance margin in general investing and explain what it means to you when trading with IG.

Maintenance margin is the amount that must be available in funds in order to keep a margin trade open. It is also known as the variation margin.

The maintenance margin is one of two types of margin required to make a leveraged trade. The other is your deposit margin, which is the amount needed to open a new position.

To keep a leveraged position open, a certain amount of funds must be paid and kept in your account. If your position starts to make a loss, then your deposit may no longer be enough to keep the trade open. In this case, your broker will ask you to increase the funding in your account. This is called a margin call.

With IG

As both CFD trades and spread bets are leveraged, we require a margin to be maintained for those positions. It is possible to use share dealing positions as collateral for this margin.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.