Technical Definition
Margin
Margin is the amount of capital a trader must deposit to open and maintain a leveraged position.
By Crypto University Editorial
LeverageLiquidationFutures
✦ Key Insight
It determines how much exposure you can take and how close you are to liquidation.
✕ Common Misconceptions
Using full margin
Not monitoring margin level
Detailed Explanation
How It Works
Initial margin → opens trade
Maintenance margin → keeps trade active
If margin drops → liquidation risk increases
In Practice
“$1,000 margin with 10x leverage → $10,000 position”
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