Topping up to initial or maintenance margin?

In situations where your account balance falls below the maintenance margin, how much are you required to top up your account to? Book 5 says top up to maintenance margin (page 45), book 6 says top up to initial margin (page 56). Which is correct?

My understanding is in an equity margin account (buying stock long/short), you settle up to maintenance margin. For long/short futures contracts, you settle up to initial margin. Can anyone 2nd that?

You’re right brian

Thanks guys. I considered that was a possibility but couldn’t find any reference to it so assumed they would be the same since the terminology is exactly the same. Was kinda expecting something in the text along the lines of “Do not confuse with equity margin account” or vice versa.

bluesman Wrote: ------------------------------------------------------- > Thanks guys. > > I considered that was a possibility but couldn’t > find any reference to it so assumed they would be > the same since the terminology is exactly the > same. Was kinda expecting something in the text > along the lines of “Do not confuse with equity > margin account” or vice versa. Schweser has put those warning sign everywhere. I am not sure about CFAI text though. However, both are quite different as equity one is really a loan with interest rate to be paid by the borrower and future one is really a guaruntee which just keeps an amount equivalent to one day price fluctuation of the underlying commodity.

Turns out it does say it in the CFAI text, it’s in the footnotes. Silly me. Thanks again for your help.