This article explains how Initial Margin and Maintenance Margin are calculated in Isolated Margin Mode in futures trading.
🔍 Overview of Isolated Margin Mode
In Isolated Margin Mode, margin is managed individually for each position.
This means that if a loss occurs in one position, it will not directly affect the margin of other positions.
⚠️ Please note:
You cannot change leverage if:
• There is an open position
• There are open (unfilled) orders
Leverage can only be adjusted when there are no open positions or orders.
💰 Initial Margin Calculation
Initial Margin is the amount of margin required to open a new position.
📌 Formula
Initial Margin = Entry Price × Position Size ÷ Leverage
This value is used to calculate the margin required when placing an order.
💡 In Isolated Margin Mode,
Initial margin is calculated and managed per position.
🛡 Maintenance Margin Calculation
Maintenance Margin is the minimum amount of margin required to keep a position open.
In Isolated Margin Mode, maintenance margin is calculated individually for each position.
📌 Formula
Maintenance Margin = Position Margin × Maintenance Margin Rate
📊 Key Features of Isolated Margin Mode
✅ Margin is managed separately for each position
✅ Risk is limited to each individual position
✅ Easier position-level risk control
⚠️ Important Notes
If the margin of an individual position falls below the maintenance margin requirement,
only that specific position may be liquidated.
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