The initial margin refers to the minimum collateral required to open a position in futures trading. The actual amount depends on the leverage used and the size of the position. With the same position size, a higher leverage results in a lower initial margin requirement; with the same leverage, a larger position requires a higher initial margin.
Formula:
USDT-margined futures (linear futures)
Initial Margin = Entry Price × Position Size × Contract Value ÷ Leverage
Example:
USDT-margined futures (linear futures)
A trader uses 25x leverage and places a limit order for 1,000 BTCUSD contracts at a price of 100,000. The contract value is 0.001 BTC per contract.
Thus, the required margin = 100,000 × 1,000 × 0.001 ÷ 25 = 4,000 USDT.
In cross margin mode, the margin includes both the initial position margin and available assets.