Initial Margin vs Maintenance 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.

The minimum margin balance required to keep a leveraged derivatives position open; when the margin balance falls to this level, the exchange triggers automatic liquidation; typically 0.5% of notional value for standard-sized positions on major exchanges.