Futures Trading | What Is Maintenance Margin? Why Do Larger Positions Require More?
Maintenance margin is the minimum margin needed to keep a position from being liquidated. In Binance USDⓈ-M futures, it is calculated as: notional value × maintenance margin rate − maintenance amount.
The larger the position’s notional value, the higher its maintenance margin rate. A common explanation is that liquidating a position of this size has a greater impact on the order book, so more buffer needs to be set aside.
By the way: $BTC is at 81588.63, 24h -0.76%.
When the market is volatile, avoid chasing orders. Let the market settle down before taking another look.
#BTC
Just a casual note; make your own trading decisions.
Maintenance margin is the minimum margin needed to keep a position from being liquidated. In Binance USDⓈ-M futures, it is calculated as: notional value × maintenance margin rate − maintenance amount.
The larger the position’s notional value, the higher its maintenance margin rate. A common explanation is that liquidating a position of this size has a greater impact on the order book, so more buffer needs to be set aside.
By the way: $BTC is at 81588.63, 24h -0.76%.
When the market is volatile, avoid chasing orders. Let the market settle down before taking another look.
#BTC
Just a casual note; make your own trading decisions.