Initial Margin vs Margin Ratio

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 current margin balance divided by the maintenance margin requirement, expressed as a percentage; when the margin ratio reaches 100%, the exchange triggers liquidation; real-time monitoring of margin ratio is the core operational discipline for managing leveraged positions.