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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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