The amount of collateral required to open a position for leverage trading is known as the initial margin.
The initial margin used to maintain the position is directly related to the leverage used. The lower the initial margin required, the higher the leverage.
To determine the required initial margin for USDT Contracts, multiply the order value by the initial margin rate. The initial margin rate is determined by the leverage employed.
Contract size x Entry Price / Leverage = Initial Margin
Assume a trader makes a long entry of 1 BTC at USDT 10,000 using 50x leverage.
((1x10,000)/50 =200 USDT) as the initial margin.
It should be noted that the initial amount displayed here includes the expected taker fee to close the position. The Initial Margin used in the Isolated Margin Mode can be changed by clicking on the "Pen" symbol icon. The position's liquidation price will be affected if the Initial Margin is changed.
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