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What Is the Margin Tier System in Relation to Risk Limits?

The margin tier system is the mechanism by which risk limits are enforced. It divides position sizes into different tiers.

As a trader's open position moves into a higher tier (larger size), the required initial and maintenance margin rates increase, and the maximum allowed leverage decreases. This tiered approach manages risk dynamically based on position size.

Does the Maintenance Margin Percentage Change Based on the Contract’s Leverage Level?
Why Does an Exchange Require a Higher Margin for a Larger Position?
What Is ‘Effective Leverage’ and Why Might It Differ from the Platform’s Stated Leverage?
What Is a “Tiered Margin” System?