The initial margin is the minimum collateral required to open a position in leveraged trading. The leverage used by the trader is inversely proportional to the required initial margin. The higher the leverage, the lower the initial margin required.
In USDT-M, the initial margin is calculated by multiplying the order value by the initial margin rate. The initial margin rate depends on the leverage used.
Initial Margin = Contract Quantity × Entry Price / Leverage
The maintenance margin is the minimum margin required for a trader to continue holding a position.
The maintenance margin will increase or decrease based on the risk limit chosen by the trader. By default, the risk limit for all trading pairs will start with the lowest maintenance margin from their respective risk limit tables. If the margin level used for the position falls below the maintenance margin level, the position will be forcibly liquidated.
Order Value = Contract Quantity × Entry Price
Maintenance Margin = Maintenance Margin Rate × Order Value
※ The required maintenance margin rate (MMR) for a position is determined by the margin level required for the position’s value.