In futures or margin trading, margin acts as a security deposit—it's the collateral used to open positions.
When you open a position, this margin is locked and unavailable for other trades until the position is closed.
The relationship between leverage and margin
Margin trading allows you to amplify potential gains using a relatively small amount of capital. Your margin is the collateral, while leverage increases your position size:
Position value = margin × leverage
In other words, higher leverage means you need less margin, but it also increases your risk exposure.
How is margin calculated?
Use the following formula:
Margin = (entry price × position size) ÷ leverage
For example, if you open a 0.1 BTC futures position at an entry price of 70,000 USDT with 200× leverage:
Margin = (70000 × 0.1) ÷ 200 = 35 USDT
To get accurate calculations quickly, use the "Futures Calculator" icon in the top-right corner of the futures trading page.
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