# What Is the Minimum Initial Margin Requirement? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## 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’](https://learn.greeks.live/path/define-initial-margin-versus-maintenance-margin/)

- [Explain the Term ‘Maintenance Margin’ in the Context of Leveraged Derivatives Trading](https://learn.greeks.live/path/explain-the-term-maintenance-margin-in-the-context-of-leveraged-derivatives-trading/)

- [What Is the Relationship between Initial Margin and Maintenance Margin?](https://learn.greeks.live/path/what-is-the-relationship-between-initial-margin-and-maintenance-margin/)

- [What Is Initial Margin and Maintenance Margin?](https://learn.greeks.live/path/what-is-initial-margin-and-maintenance-margin/)

- [What Does “Margin Requirement” Mean in the Context of Futures Trading?](https://learn.greeks.live/path/what-does-margin-requirement-mean-in-the-context-of-futures-trading/)

- [Define ‘Initial Margin’ and ‘Maintenance Margin.’](https://learn.greeks.live/path/define-initial-margin-and-maintenance-margin/)

- [How Is the ‘Margin Requirement’ Calculated for a Token Futures Contract?](https://learn.greeks.live/path/how-is-the-margin-requirement-calculated-for-a-token-futures-contract/)

- [What Is the Function of the ‘Initial Margin’ in Derivatives Trading?](https://learn.greeks.live/path/what-is-the-function-of-the-initial-margin-in-derivatives-trading/)

## Glossar

### [Initial Margin](https://learn.greeks.live/area/initial-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/initial-margin-requirement/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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.

## Discover More

### [Distinguish between Initial Margin and Maintenance Margin](https://learn.greeks.live/path/distinguish-between-initial-margin-and-maintenance-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Distinguish between Initial Margin and Maintenance Margin](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Collateralized-Cross-Asset-Hedging-Mechanisms-in-Decentralized-Finance.webp)

Initial margin is required to open a position; maintenance margin is the minimum required to keep it open and avoid liquidation.

### [What Role Does the "Minimum Viable Product" (MVP) Play in Whitepaper Credibility?](https://learn.greeks.live/path/what-role-does-the-minimum-viable-product-mvp-play-in-whitepaper-credibility/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Role Does the "Minimum Viable Product" (MVP) Play in Whitepaper Credibility?](https://learn.greeks.live/wp-content/uploads/2025/10/Tangible-Manifestation-of-Tokenized-Asset-Allocation-Within-High-Frequency-Trading-Architecture.webp)

An MVP provides tangible proof of the team's execution capability and reduces the risk of "vaporware" by demonstrating a functional product.

### [How Is the 'Margin Requirement' Calculated for a Token Futures Contract?](https://learn.greeks.live/path/how-is-the-margin-requirement-calculated-for-a-token-futures-contract/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is the 'Margin Requirement' Calculated for a Token Futures Contract?](https://learn.greeks.live/wp-content/uploads/2025/10/Focus-Parabolic-Reflector-Feedhorn-Assembly-Illustrating-Orthogonal-Dipole-Orientation-Near-Parabolic-Aperture.webp)

Calculated as a percentage of total contract value, based on volatility and liquidity, determining the initial and maintenance collateral required.

### [How Is the 'Portfolio Margin' Requirement Calculated under Regulatory Frameworks?](https://learn.greeks.live/path/how-is-the-portfolio-margin-requirement-calculated-under-regulatory-frameworks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is the 'Portfolio Margin' Requirement Calculated under Regulatory Frameworks?](https://learn.greeks.live/wp-content/uploads/2025/10/Geometric-Crystaline-Structure-Symbolizing-Complex-Volatility-Surface-Calibration-in-Decentralized-Finance.webp)

Calculated using a regulatory-approved risk model (e.g. SPAN) that determines the maximum loss across various simulated market scenarios.

### [How Does the Margin Requirement for a Short Option Position Differ in a Cash-Settled Environment?](https://learn.greeks.live/path/how-does-the-margin-requirement-for-a-short-option-position-differ-in-a-cash-settled-environment/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Margin Requirement for a Short Option Position Differ in a Cash-Settled Environment?](https://learn.greeks.live/wp-content/uploads/2025/10/Secure-Hardware-Module-Insertion-Into-Decentralized-Autonomous-Organization-Governance-Interface-Mechanism.webp)

Margin focuses purely on financial risk and maximum potential loss, excluding the complexity of physical asset delivery and custody.

### [What Is the Difference between a Network-Enforced Minimum Fee and a Node's Relay Policy?](https://learn.greeks.live/path/what-is-the-difference-between-a-network-enforced-minimum-fee-and-a-nodes-relay-policy/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between a Network-Enforced Minimum Fee and a Node's Relay Policy?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Ledger-Imbalance-Visualization-via-Tokenized-Instrument-Settlement-Mechanics.webp)

Network-enforced minimum is a protocol validity rule; a node's relay policy is a non-consensus rule for broadcasting to prevent spam.

### [How Does the Initial Margin Requirement Change with Higher Leverage Settings?](https://learn.greeks.live/path/how-does-the-initial-margin-requirement-change-with-higher-leverage-settings/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Initial Margin Requirement Change with Higher Leverage Settings?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Leveraged-Token-Mechanics-Revealing-Hidden-Volatility-Surface-Parameters-in-Digital-Asset-Swaps.webp)

Higher leverage requires a smaller initial margin percentage but increases the risk of liquidation significantly.

### [How Does the Minimum RFQ Size Relate to Regulatory Requirements for Block Trades?](https://learn.greeks.live/path/how-does-the-minimum-rfq-size-relate-to-regulatory-requirements-for-block-trades/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Minimum RFQ Size Relate to Regulatory Requirements for Block Trades?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Clock-Hands-Intersecting-Over-Reflective-Digital-Asset-Ledger-Surface-Representing-Volatility.webp)

The minimum RFQ size often aligns with the size thresholds that qualify a trade as a large, privately negotiated 'block trade.'

### [How Does a Broker's House Margin Requirement Differ from Exchange Margin for Crypto Derivatives?](https://learn.greeks.live/path/how-does-a-brokers-house-margin-requirement-differ-from-exchange-margin-for-crypto-derivatives/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Broker's House Margin Requirement Differ from Exchange Margin for Crypto Derivatives?](https://learn.greeks.live/wp-content/uploads/2025/10/Microscopic-Examination-of-Electromechanical-Actuator-Assembly-Interface-for-Decentralized-Finance-Protocol-Mechanics.webp)

House margin is the broker's safety buffer, typically set higher than the exchange's minimum margin requirement to mitigate default risk.

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**Original URL:** https://learn.greeks.live/learn/what-is-the-minimum-initial-margin-requirement/
