All termsLeverage, Margin and CollateralStart here
Margin
Margin is capital used to support a leveraged trading position. In perpetual futures, a trader deposits or allocates collateral as margin, allowing them to control a position that may be larger than the amount of margin being used.
Why it matters to you
Margin is not the same thing as position size. A trader might use $1,000 of margin to support a $5,000 position. Their market exposure is approximately $5,000 even though only $1,000 has been allocated as margin. If losses reduce the available margin too far, the position may eventually become eligible for liquidation.
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