How Is the Margin Requirement Calculated for a Futures Contract? ⎊ Path

How Is the Margin Requirement Calculated for a Futures Contract?

Initial margin is the amount a trader must deposit to open a futures position, calculated as a percentage of the contract's notional value. Maintenance margin is the minimum balance required.

If the account falls below maintenance margin due to daily 'marking to market,' a 'margin call' is issued to replenish the balance.

What Is the Relationship between Leverage and Maintenance Margin Requirements?

What Is Maintenance Margin and Why Is It Crucial for Leveraged Crypto Derivatives?

What Is a ‘Margin Call’ and What Triggers It in Futures Trading?

Explain the Term ‘Maintenance Margin’ in the Context of Leveraged Derivatives Trading

How Is the Margin Ratio Calculated?

What Is a “Margin Call” and What Triggers It?

Define ‘Maintenance Margin’ and Its Role in Leveraged Derivatives Trading

How Is the ‘Margin Requirement’ Calculated for a Token Futures Contract?

Glossar

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.

Futures Trading

Leverage ⎊ Futures trading, within cryptocurrency and broader financial derivatives, represents an agreement to buy or sell an asset at a predetermined price on a specified future date, functioning as a contingent claim whose value is derived from the underlying asset’s price movements.