Free crypto tool
Margin Calculator
Find the initial margin a position needs and the maintenance margin that would trigger liquidation.
Initial margin required
$1,000
to open $10,000 at 10x
Maintenance
$50
Buffer
$950
Exposure
$10,000
Initial margin vs maintenance margin
Initial margin is the collateral you must post to open a position: position size ÷ leverage. A $10,000 position at 10x needs $1,000 up front. Maintenance margin is the minimum equity you must keep to stay open, set by the venue as a small percentage of the position.
The distance between the margin you have posted and the maintenance requirement is your real buffer, the room the market has to move against you before you are liquidated. Higher leverage means a smaller initial margin but a thinner buffer.
Knowing the number is not the same as watching it. Otomato monitors your open positions and alerts you as your buffer thins toward the maintenance line.
The complete guide
The two margins that matter
Opening a leveraged position involves two separate margin numbers. Initial margin is what you must post to open the trade, equal to the position size divided by your leverage. Maintenance margin is the minimum equity the venue requires you to keep, a small percentage of the position, below which you are liquidated.
The distance between the two is your real safety buffer. A large initial margin relative to the maintenance requirement means the market has more room to move against you before the position is at risk.
Why maintenance margin is not fixed
Most venues raise the maintenance margin rate as position size grows, through a tier system, so very large positions need proportionally more collateral. The rate also varies by market: blue-chip perps get lower requirements than thin, volatile ones.
- Initial margin = position size / leverage.
- Maintenance margin = position size × maintenance rate.
- Buffer = posted margin − maintenance margin.
Knowing these numbers is step one; watching the buffer erode in real time is step two. Otomato monitors your open positions and alerts you as equity approaches the maintenance line.
Frequently asked questions
- What is initial margin versus maintenance margin?
- Initial margin is the collateral you must post to open a position: position size / leverage. Maintenance margin is the minimum equity you must keep to avoid liquidation, set by the exchange as a small percentage of the position. Fall below it and the position is liquidated.
- How do I calculate the margin I need?
- For a target position size and leverage, initial margin = position size ÷ leverage. Maintenance margin = position size × the maintenance margin rate for that market. This calculator returns both so you know how much collateral to post and how much buffer you have.
- Why does maintenance margin matter?
- It is the line that triggers liquidation. The gap between your posted margin and the maintenance requirement is your true buffer against a move. Otomato watches your open positions and alerts you as that buffer thins toward liquidation.
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Know your margin, watch your buffer
Otomato detects your leveraged positions and alerts you as equity approaches the maintenance margin, before liquidation hits.
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