The initial margin refers to the minimum amount of collateral required to open a position in a leveraged transaction.

The leverage used by the trader is inversely proportional to the initial margin required to hold the position.

The higher the leverage, the lower the initial margin required.

In the USDT perpetual contract, the initial margin is obtained by multiplying the commission value by the initial margin rate.

The initial margin rate depends on the leverage multiple used.

Initial margin = number of contracts x entry price/leverage

The trader used 50 times leverage to open a long position of 1 BTC at a price of 10,000 USDT.

Initial margin = (1 x 10,000) / 50 = 200 USDT

The initial margin used by the position can be found in the “Position” tab of the position area.

Please note that the position margin here includes the handling fee (withdrawer) that may be required to close the position.

In the margin by position mode, you can adjust the initial margin by clicking the “pencil” button.

After the initial margin is adjusted, the liquidation price of the position will also change.

For more information about adjusting the initial margin, please click here.

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