What is maintenance margin? Why are higher requirements imposed on larger positions?
Maintenance margin is the minimum margin required to keep a position from being liquidated. For Binance USDⓈ-M contracts, it is calculated as notional value × maintenance margin rate − maintenance amount.
The larger a position’s notional value, the higher the maintenance margin rate that applies. One explanation is that liquidating such a position has a greater market impact, so more buffer is needed.
Quick look: $BTC , current price 82142, 24h -0.61%.
Be cautious of projects promising high returns.
Maintenance margin is the minimum margin required to keep a position from being liquidated. For Binance USDⓈ-M contracts, it is calculated as notional value × maintenance margin rate − maintenance amount.
The larger a position’s notional value, the higher the maintenance margin rate that applies. One explanation is that liquidating such a position has a greater market impact, so more buffer is needed.
Quick look: $BTC , current price 82142, 24h -0.61%.
Be cautious of projects promising high returns.