What is margin maintenance ratio?Margin Maintenance Ratio

(Margin − paper loss) ÷ position value. Below the required level (legal minimum 20%, higher at many brokers) you must add margin, or the position is closed for you.

Learn “margin maintenance ratio” in an animated lesson

Japan Stock Rules
Margin Trading (Shinyo): Borrow Money to Buy, Borrow Shares to Sell
In Japan, putting up margin lets you borrow money to buy shares or borrow shares to sell, at about 3.3× leverage; if the maintenance ratio falls below the requirement you must add margin, and standardized margin lasts 6 months at most.

Related terms

margin call
borrow fee
margin trading (Japan)
standardized margin trading
negotiable margin trading

See how “margin maintenance ratio” works for yourself with an animation you can drag and play.

Go to “Margin Trading (Shinyo): Borrow Money to Buy, Borrow Shares to Sell”