What is maintenance margin, and why are the requirements higher for larger positions? Don’t panic—your class study rep is here with an answer:
Margin balance = wallet balance + unrealized P&L. As losses grow, margin balance falls, and the margin ratio rises.
At the same leverage, larger positions have a higher maintenance margin rate, so the liquidation price is closer to the entry price. Looking only at leverage can make it easy to underestimate the risks of a large position.
Understanding this won’t make me money right away, but it can help me avoid a few basic mistakes.
$BTC 66738.01（-3.12%）
Margin balance = wallet balance + unrealized P&L. As losses grow, margin balance falls, and the margin ratio rises.
At the same leverage, larger positions have a higher maintenance margin rate, so the liquidation price is closer to the entry price. Looking only at leverage can make it easy to underestimate the risks of a large position.
Understanding this won’t make me money right away, but it can help me avoid a few basic mistakes.
$BTC 66738.01（-3.12%）