What is Margin?
The collateral you deposit to open and maintain a leveraged trading position.
Margin is the capital you put up as collateral when opening a leveraged trade. It is not the full cost of the position — it is the security deposit the exchange holds to cover potential losses.
Initial vs. maintenance margin:
| Type | Purpose |
|---|---|
| Initial margin | Required to open the position |
| Maintenance margin | Minimum to keep it open |
Example: Opening a $10,000 BTC position at 10× leverage requires $1,000 initial margin. That $1,000 is your margin — the remaining $9,000 is borrowed from the exchange.
Margin modes:
Margin ratio:
Most exchanges display a margin ratio — the percentage of your maintenance margin being consumed. At 100%, you face liquidation. Keep it well below 80% as a safety buffer.