Margin is the core concept in futures trading — understand it to manage risk effectively. sign up for Binance and download the Binance APP to see margin data on the futures page.
What Is Margin?
Margin is the collateral deposited for futures positions — like a security deposit. With leverage, you only need a fraction of the full position value.
Example: 10x leverage on a 1,000 USDT position requires only 100 USDT margin.
Types of Margin
Initial Margin
Minimum required to open a position. Initial Margin = Position Value / Leverage.
Maintenance Margin
Minimum to keep a position open. When your margin falls below this due to losses, liquidation is triggered.
Available Margin
Unused funds in your futures account, available for new positions or adding to existing ones.
Margin Ratio
Displayed on your positions page:
- High: Position is safe, far from liquidation
- Low: Danger — approaching liquidation
- Below 100%: Liquidation triggered
Monitor this constantly — it's your position's health indicator.
Cross vs. Isolated Margin
Isolated
Each position has independent margin. Liquidation = only that position's margin lost.
Cross
All positions share the total account balance. Higher capital efficiency but entire account at risk.
When to Add Margin
When the market moves against you and margin ratio drops:
- Add margin: Inject more funds to reduce liquidation risk
- Reduce/close position: Decrease exposure
In isolated mode, tap "+" next to the position to add margin manually.
Management Tips
- Don't use all available margin — keep reserves
- Monitor total risk across multiple positions
- Check margin ratio regularly
- Single trade should use no more than 20% of total funds
Summary
Margin is your futures collateral. Monitor the margin ratio, manage funds wisely, and avoid maxing out positions.