Initial Margin is the amount of collateral required to open a position for Leverage trading. The leverage used is directly related to the initial margin used to maintain the position. The higher the leverage, the lower the initial margin required.
To calculate the initial margin required for USDT Contracts, multiply the order value with the initial margin rate. The initial margin rate depends on the leverage used.
Initial Margin = Contract size x Entry Price / Leverage
Trader place a long entry of 1 BTC at USDT 10,000 with 50x leverage.
Initial Margin=(1x10,000)/50 =200 USDT
The initial margin used for a trade can be found on the "Positions" tab. Please be noted that the initial amount shown here includes the expected taker fee to close the position. In the Isolated Margin Mode, the Initial Margin used can be adjusted by clicking on the "Pen" symbol icon. By adjusting the Initial Margin used, this will affect the liquidation price of the position. For more details regarding adjusting the initial margin, please click here.