Introduction of Maintenance Excess The term Maintenance Excess, also known as maintenance margin, or requirement, is a key concept in the trading and investment world. It refers to the minimum amount traders must maintain in their accounts to cover any open positions, and to protect against potential losses from leveraged trades, in which you control larger positions by contributing less capital. This is especially important for leveraged accounts, where larger risks demand greater capital reserves to control.
The Maintenance Excess component is a key part of traders' risk management. Maintenance excess ensures traders have sufficient capital to cover potential losses in the event of market fluctuations. This helps them avoid falling into negative equity status.