What Is “Initial Margin” and “Maintenance Margin” in Perpetuals?
Initial margin is the minimum amount of collateral required to open a leveraged perpetual futures position. Maintenance margin is the minimum collateral level that must be maintained to keep the position open.
If the collateral value drops below the maintenance margin due to price movement, the position is subject to automatic liquidation to prevent the account balance from falling below zero.
Glossar
Minimum Collateral Level
Level ⎊ The minimum collateral level defines the lowest acceptable amount of collateral required to secure a loan or maintain a leveraged derivatives position.
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.
Perpetual Futures
Structure ⎊ Perpetual Futures are a type of derivative contract, native to the cryptocurrency market, that allows traders to speculate on the future price of an underlying asset without a fixed expiration date.