Initial Margin vs Isolated Margin

The capital required to open a leveraged derivatives position, calculated as notional value divided by leverage; at 10x leverage, a $50,000 notional Bitcoin position requires $5,000 initial margin to open.

A margin mode in which only the capital specifically assigned to a position is at risk; if liquidated, the loss is limited to the assigned margin and does not affect the rest of the account balance; the correct default mode for speculative directional trades.