What is Margin?
The collateral you post to hold a leveraged position, and what a liquidation consumes.
Margin is your own capital in a leveraged trade. Maintenance margin is the minimum the exchange requires before it closes the position for you.
Cross margin shares collateral across positions, so one bad trade can endanger the rest. Isolated margin limits the damage to that position.
Related terms
- LeverageTrading
Using borrowed exposure so a small price move produces a large gain or loss.
- LiquidationTrading
Forced closing of a leveraged position when its margin falls below the maintenance level.
- Perpetual futuresTrading
A derivative that tracks an asset with no expiry, held open by periodic funding payments.