Initial Margin

What is initial margin?

Initial margin is the amount of margin required to open a position and depends on the amount of leverage. At 1:1 leverage, initial margin is equal to the value of the position. At 2:1 leverage, initial margin is half of the value of the position. At 3:1 leverage, initial margin is a third of the value of the position.

Calculating initial margin

A $300 dollar long position opened at 3:1 leverage will use $100 margin. A $300 position opened at 2:1 leverage will use $150 margin. A $300 position opened at 1:1 leverage will use $300 margin.