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Initial Margin (Inverse Contract)
2024-03-27 11:53:23
Initial Margin is the amount of collateral required to open a position for Leverage trading.
To calculate the initial margin, the system will take the Contract Quantity / (Order Price x Leverage). The initial margin rate depends on the leverage used. Assuming you are using 100x leverage for 100 BTC contract value, you would only need to invest 1 BTC as your initial margin (1/100).
To check the initial margin rate for your position, and the maximum leverage you can use, you may refer to the Risk limit table.
For example:
A trader buys 12,000 BTCUSD contracts at 8,000 USD with 50x leverage.
= Contract Quantity / (Order Price x Leverage)
= 12,000/(8,000×50)
= 0.03 BTC
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