How is maintenance margin calculated, and why are the requirements higher for larger positions?
Binance USDⓈ-M contracts use tiers based on a position’s notional value: the higher the notional value, the lower the maximum leverage available and the higher the maintenance margin rate.
At the same leverage, a larger position is subject to a higher maintenance margin rate, so its liquidation price will be closer to its entry price. Looking only at leverage can lead you to underestimate the risk of a large position.
Quick glance: $BTC is quoted at 76741.54 (24h -0.31%).
Binance USDⓈ-M contracts use tiers based on a position’s notional value: the higher the notional value, the lower the maximum leverage available and the higher the maintenance margin rate.
At the same leverage, a larger position is subject to a higher maintenance margin rate, so its liquidation price will be closer to its entry price. Looking only at leverage can lead you to underestimate the risk of a large position.
Quick glance: $BTC is quoted at 76741.54 (24h -0.31%).
