Cryptocurrency Lexicon Letter M

Margin

The collateral funds pledged by a trader to open and support a leveraged position.

Margin glossary illustration
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In-Depth Explanation

Initial margin is the deposit required to open a contract, while maintenance margin is the minimum equity needed to avoid liquidation.

Practical Market Example

Real-World Application

Depositing $2,000 of USDT as margin to open an $8,000 leveraged position.

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