Restore to Maintenance or Initial Margin Balance?

CFA Level I
#1

Hi guys,

I always thought that if a margin call gets made, you will need to put money in your equity account (variation margin) to restore the initial margin requirement.

However Elan says:

If the amount of an investors equity marin account falls below the maintenance level, she must at least deposit an amount t restore the maintenance margin.

Can someone help exlain please?

#2

With Equities back to maintenance margin With Futures back to initial margin

#3

Hi Joey, thanks for clarification!

#4

Excellent clarification, I had no idea.