Do Crypto Perpetual Futures Have Maintenance Margin?
Yes, crypto perpetual futures, like traditional futures, have a maintenance margin. This is the minimum amount of collateral required to keep the leveraged position open.
If the collateral drops below this level, the position is subject to liquidation. The maintenance margin is usually a small percentage of the notional value.
Glossar
Collateral
Requirement ⎊ Collateral in derivatives trading represents the assets pledged by a market participant to secure their obligations, mitigating the counterparty risk associated with open positions.
Maintenance Margin
Collateral ⎊ Within cryptocurrency derivatives and options trading, the maintenance margin represents the minimum equity a trader must maintain in their account to cover potential losses.
Funding Rate
Mechanism ⎊ Funding Rate represents a periodic payment exchanged between traders holding opposing positions in perpetual futures contracts, establishing an equilibrium between contract prices and the underlying spot market.