Initial margin is what you must put up to open a position; maintenance margin is the minimum that must remain for it to stay open. As the position moves against you, unrealised losses eat into the posted collateral, and when the balance falls to the maintenance level the venue closes the position.
Exchanges offer the choice between isolated and cross margin. Isolated margin confines the collateral — and therefore the loss — to that one position. Cross margin lets the whole account balance back every position, which delays liquidation but puts the entire balance at risk rather than a defined slice of it.
What is the difference between isolated and cross margin?
Isolated margin risks only the collateral assigned to that position. Cross margin draws on the full account balance to keep positions open, which reduces the chance of liquidation but raises what is at stake if it happens.
Last updated October 17, 2026