What is margin?
2022-11-25
The leverage of futures contract transactions is presented by a margin, meaning that you do not need to pay 100% of the fund when conducting transactions. You only need to invest a small number of funds at a certain rate according to the futures value as collateral assets. This fund is called margin.
1.
Leverage greatly improves the utilization rate of the fund; high returns are accompanied by high risks.
2.
The higher the leverage used by the trader, the lower the required margin.
For example:
Mr. Zhang currently holds 1
BTC/USDT long position with
2X leverage, and the current position margin is approximately
85 USDT. If the leverage is increased, the required margin will decrease accordingly; if the leverage is decreased, the required margin will increase accordingly.
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