Bitget Futures: Margin

1. Understanding margin

In futures trading, leverage is facilitated through margin, allowing traders to invest a fraction of the asset's value as collateral rather than paying the full amount upfront. This collateral amount is known as "margin".

2. Factors affecting margin

(1) Leverage: As a trader increases leverage, the required margin decreases.

(2) Futures price: Changes in the futures price impact the margin required for a position.

(3) Futures position size: A larger position size requires more margin.

Example:

Let's consider Investor A trading BTCUSDT futures when BTC is priced at 50,000 USDT.

With a 5X leverage and a 1 BTC position,

the required margin is 10,000 USDT.

Adjusting leverage affects the margin accordingly—increasing leverage reduces margin, while decreasing leverage increases it.

2. Opening margin

• Opening margin is the minimum amount required to open a position, displayed as the "order cost" when placing an order.

• Opening margin = (position value ÷ leverage multiple) + estimated opening fee at the time of opening a position.

• Any remaining funds after deducting opening fees will be automatically returned to the available balance upon order fulfillment.

3. Position margin

• After opening a position, you can view its margin in Positions under Trade > Futures.

• Initial position margin = position value ÷ leverage

• Margin for a position can be adjusted using the + or − buttons or by changing the leverage multiplier.

Note: Futures trading is high-risk and high-return, offering the potential for greater profits with less capital but also for greater losses. Investors should exercise caution and manage risks effectively.

5. Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users are advised to conduct their own research and invest at their own discretion. Bitget shall not be liable for any investment losses.