Initial Margin

Initial margin is the amount of collateral required to open a particular leveraged or derivative position.

Initial margin is related to the nominal position size and available leverage. In a simplified model, 10x leverage corresponds to initial margin of approximately 10% of the nominal position size, before fees and platform-specific adjustments.

Initial Margin ≈ Position Size / Leverage

Example

A $10,000 position using 5x leverage requires approximately $2,000 of initial collateral. Actual exchange requirements can differ because of position tiers, volatility, fees, and other parameters.

Initial margin should be distinguished from maintenance margin, which determines the minimum collateral required after the position has been opened.