What is Initial Margin?
Initial Margin is the amount of collateral required to open a position for Leverage trading. The leverage used is directly related to the initial margin used to maintain the position. The higher the leverage, the lower the initial margin required. To calculate the initial margin required for USDT Contracts, multiply the order value with the initial margin rate. The initial margin rate depends on the leverage used.
What is the Maintenance Margin?
Maintenance Margin is the minimum margin required to continue holding a position. It will increase or decrease according to the trader's selected risk limit. By default, all risk limits start at the lowest maintenance margin level inside each trading pair's risk limit table. Liquidation occurs when the isolated margin for the position is less than its maintenance margin level.
In most exchanges, the Maintenance Margin is usually half of the Initial Margin. At Coinlocally, however, the Maintenance Margin is only less than half of the Initial Margin, which is more beneficial to traders.
It is important to note that the Maintenance Margin will directly affect the liquidation price. To avoid auto-deleveraging, it is highly recommended to close your positions before the collateral falls below the Maintenance Margin.
How can I see Leverage & Margin brackets?
You can find the trading rules, including your Leverage & Margin brackets and other important information, from the link below:
https://futures.coinlocally.com/en_US/futuresData
In Summary
The initial margin is the value you commit when opening a position, and the maintenance margin refers to the minimum balance you need to keep the positions open. The maintenance margin is a dynamic value that changes according to market price and to your account balance.
Click here to see more information : https://futuresdoc.gitbook.io/help-center/perpetual/untitled/margin-and-profit-loss-calculations