In futures or margin trading, margin acts as a security deposit—it's the collateral used to open positions.
When you open a position, this margin is locked and unavailable for other trades until the position is closed.

The relationship between leverage and margin

Margin trading allows you to amplify potential gains using a relatively small amount of capital. Your margin is the collateral, while leverage increases your position size:

Position value = margin × leverage

In other words, higher leverage means you need less margin, but it also increases your risk exposure.

How is margin calculated?

Use the following formula:

Margin = (entry price × position size) ÷ leverage

For example, if you open a 0.1 BTC futures position at an entry price of 70,000 USDT with 200× leverage:

Margin = (70000 × 0.1) ÷ 200 = 35 USDT

To get accurate calculations quickly, use the "Futures Calculator" icon in the top-right corner of the futures trading page.