In leveraged trading, the initial margin is the amount of margin that the trader needs to a mortgage when opening a position.

The way to calculate the initial margin is to use the number of contracts / (entrusted price x leverage).

Assuming 100 times leverage is used when trading a contract worth 100 BTC, the trader only needs to invest 1 BTC as the initial margin (1/100).

Traders can check the maximum leverage allowed for the position through the risk limit table.

Example: A

Trader uses 50 times leverage to buy 12,000 BTCUSD contracts at 8,000 USD.

Initial margin = number of contracts / (opening price × leverage)

= 12,000 / (8,000×50)

= 0.03 BTC

Go to Bybit’s Official Website