What is the difference between maintenance margin and initial margin in the context of cryptocurrency trading?

1 answers

• Dec 25, 2021 · 3 years ago
  Maintenance margin and initial margin are important concepts in cryptocurrency trading. Maintenance margin refers to the minimum amount of funds that you need to keep in your account to maintain an open position. It acts as a safety net to prevent your account from falling below a certain level. On the other hand, initial margin is the initial deposit required to open a position. It is a percentage of the total value of the position and serves as collateral for the trade. While maintenance margin is a continuous requirement, initial margin is only required when you open a position. By understanding and managing these margins effectively, you can better control your risk and protect your trading account.
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