Contract Trading — Initial Margin

Initial margin refers to the minimum collateral amount required to open a position in contract trading. The actual value depends on the leverage used by the investor and the position size the investor wants to open. For the same position size, the higher the leverage, the lower the required initial margin; for the same leverage, the larger the position, the higher the required initial margin.

USDT-margined contracts (forward contracts)

Initial Margin = Opening Price × Opening Quantity × Contract Value / Leverage

USDT-margined contracts (forward contracts)

An investor uses 25x leverage and submits a limit order for 1,000 BTCUSD contracts at a price of 100,000. The contract value is 0.001 BTC per contract.

Then the investor’s margin = 100,000 × 1,000 × 0.001 / 25 = 4,000 USDT;

In cross margin mode, the margin includes the initial position margin and available assets.