How Is the 'Margin Requirement' Calculated for a Token Futures Contract? ▴ Learn

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

The margin requirement is the collateral a trader must deposit to cover potential losses. It is calculated as a percentage of the total contract value.

Exchanges use volatility and liquidity to set the 'initial margin' (required to open a position) and the 'maintenance margin' (minimum required to keep it open). Highly volatile tokens will have higher margin requirements to protect the clearing house from default risk.

What Is the Minimum Initial Margin Requirement?

Explain the Difference between ‘Initial Margin’ and ‘Maintenance Margin’

How Does the Concept of “Initial Margin” Differ from “Maintenance Margin” in Futures Trading?

Define “Initial Margin” and “Maintenance Margin” in the Context of Derivatives Trading