What is Margin?
Margin, or margin, is the money a trader deposits into their account to open and maintain a position. It's a deposit concept that allows you to trade larger amounts of money while only risking a small portion of your own money.
• In futures or margin trading, you only deposit a fraction of the total trade amount and borrow the rest to trade.
• You can only afford to lose as much as you put in, and if you lose more than that, you're liquidated.
Initial Margin
This is the minimum amount of margin required when you first open a position.
• It is automatically calculated by the exchange, taking into account your leverage.
• Example: Trade 1,000 USDT with 10x leverage → Initial Margin is 100 USDT
Maintenance Margin
The minimum margin required to maintain a position.
• If the market moves against you and you incur losses, you must have at least this maintenance margin in your account to keep your position open.
• Dropping below the Maintenance Margin → Liquidation occurs
💡 Example of using Initial Margin and Maintenance Margin
• Leverage: 10x
• Position size: 1,000 USDT
• Initial Margin: 100 USDT
• Maintenance Margin: 50 USDT
→ If your position goes into losses and your equity falls below 50 USDT, the exchange will execute a liquidation to limit your losses.
Margin Mode
Set up margin mode to manage your risk.
📄 Related Articles