What Is the Minimum Initial Margin Requirement? ⎊ Path

What Is the Minimum Initial Margin Requirement?

The minimum initial margin is the smallest amount of capital a trader must deposit into their account to open a new leveraged derivative position. It is set by the exchange or broker and is a percentage of the total contract value.

This requirement is established to ensure the trader has sufficient collateral to cover initial adverse price movements.

Define ‘Initial Margin’ versus ‘Maintenance Margin’

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

What Is the Relationship between Initial Margin and Maintenance Margin?

What Is Initial Margin and Maintenance Margin?

What Does “Margin Requirement” Mean in the Context of Futures Trading?

Define ‘Initial Margin’ and ‘Maintenance Margin.’

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

What Is the Function of the ‘Initial Margin’ in Derivatives Trading?

Glossar

Initial Margin

Collateral ⎊ Initial margin represents the equity a trader must deposit with a broker or exchange as a good faith commitment to cover potential losses arising from derivative positions, notably within cryptocurrency markets.

Initial Margin Requirement

Collateral ⎊ Initial margin requirements, particularly within cryptocurrency derivatives and options trading, fundamentally represent the sum of assets a trader must deposit with a broker or exchange to cover potential losses arising from leveraged positions.