Just wanted to clarify something very quickly. With margin futures, when equity position dips below maintenance margin, you must replenish back up to the initial margin. With an equity holding, when equity position dips below maintenance margin, you must replenish back up to the maintenance margin. Is this correct, or vice versa??
That is correct. Also, keep in mind that equity margin is borrowing, so there is an interest cost, but with futures margins, you are just posting cash.