Leverage, Margin and Collateral

Account Balance

Account balance is the amount recorded in a trading account according to the platform's accounting system. Depending on the platform, unrealized pr...

Account Equity

Account equity represents the current value of a trading account after relevant profits and losses are taken into account according to the platform...

Available Margin

Available margin is the amount of eligible account capital currently available to support existing positions or open additional ones. Its exact cal...

Buying Power

Buying power is the amount of additional trading exposure an account may be able to open based on its available capital, margin rules and leverage.

Collateral Value

Collateral value is the value a trading platform assigns to assets being used to support margin obligations. It may not always equal the asset's fu...

Collateral Weight

A collateral weight is the proportion of an asset's value that a platform recognizes for margin purposes. Riskier or more volatile assets may recei...

Cross Margin

Cross margin is a margin mode in which eligible account collateral can be shared across positions according to the platform's rules. Profits, losse...

Effective Leverage

Effective leverage describes the relationship between a trader's actual market exposure and the capital or equity supporting that exposure. It can...

Haircut

A haircut is a reduction applied to the value of an asset when determining how much of that value will be recognized for collateral or risk purposes.

Initial Margin

Initial margin is the amount of margin required to open or establish a leveraged position. The amount depends on factors such as position size, lev...

Isolated Margin

Isolated margin is a margin mode where a specified amount of margin is allocated to an individual position rather than automatically sharing all el...

Maintenance Margin

Maintenance margin is the minimum amount of margin or account equity that must be maintained according to a platform's rules to keep a leveraged po...

Margin

Margin is capital used to support a leveraged trading position. In perpetual futures, a trader deposits or allocates collateral as margin, allowing...

Margin Asset

A margin asset is an asset accepted by a trading platform as collateral for leveraged positions. Depending on the contract and platform, this could...

Margin Balance

Margin balance is a measure used by trading platforms to represent the value available within a margin account after applying the platform's releva...

Margin Call

A margin call is a warning or requirement that additional margin is needed because an account or position no longer satisfies, or is approaching, r...

Margin Ratio

Margin ratio is a risk measure used by trading platforms to compare account or position resources with required margin. The exact formula and inter...

Margin Requirement

A margin requirement is the amount or proportion of capital a trading platform requires to open or maintain a leveraged position. Different require...

Maximum Leverage

Maximum leverage is the highest leverage a trading platform permits for a particular market, position size or account under its rules.

Portfolio Margin

Portfolio margin is a margin system that evaluates risk across multiple positions rather than treating every position completely independently. Off...

Realized PnL

Realized PnL is profit or loss that has been recognized according to the platform's accounting rules, commonly after some or all of a position has...

Return on Equity (ROE)

In leveraged trading interfaces, return on equity, or ROE, commonly expresses a position's profit or loss relative to the capital or margin used fo...

Unrealized PnL

Unrealized PnL is the profit or loss associated with an open position that has not yet been fully realized according to the platform's accounting r...

Used Margin

Used margin is the portion of a trader's eligible capital currently allocated or required to support open positions and, depending on the platform,...