Margin
Margin is the collateral you put up to open a leveraged position. It's your skin in the game—the amount you can actually lose if the trade goes south.
Understanding the Concept
Understanding margin is critical if you're using leverage. Initial margin is what you need to open a position. Maintenance margin is the minimum you need to keep it open. Fall below maintenance margin and you get liquidated. There's cross margin (entire account balance backs all positions) and isolated margin (only allocated funds at risk per position). Isolated is safer for beginners—if one trade gets liquidated, others survive. Cross margin is more capital efficient but riskier. Margin calls happen when your account value drops near maintenance levels. The exchange is warning you to add funds or close positions before they liquidate you.
Real-World Example
You want to control $10,000 of Bitcoin with 10x leverage. Your initial margin requirement is $1,000. If BTC drops and your margin falls to $500 (maintenance level), you're getting liquidated unless you add more funds.
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