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Maintenance Margin Requirement

Definition
The required amount of collateral or equity needed to maintain a margin account with an exchange. The minimum must be met at all times, but the particular amount required can vary. In the case of two major U.S. indices, the New York Stock Exchange and Nasdaq, the maintenance margin is 25% of the value of the stocks in the margin account. An investor will face a margin call if unable to maintain this minimum level.

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