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How Is the Margin Calculated for a Crypto Futures Position?

Margin is calculated as a percentage of the total notional value of the futures contract. This percentage is determined by the exchange and depends on the asset's volatility and the leverage used.

For example, a 10% margin on a $10,000 contract means the trader must deposit $1,000. This required deposit is the initial margin, which acts as collateral against potential losses.

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