Bitget Futures: Margin

In Bitget futures trading, margin plays a pivotal role as a cornerstone for trading and serves as a key mechanism for risk control.

1. Understanding margin

The leverage in futures trading is facilitated through margin, which means you do not need to pay the full amount for the asset. Instead, you only need to invest a small amount of funds at a specified rate based on the futures value as collateral. This fund is known as margin.

1) Leverage greatly improves the utilization rate of funds, but with higher returns comes greater risk.

2) The higher the leverage used by a trader, the lower the required margin.

For example:

Sam currently holds a BTCUSDT long position of 1 BTC while BTC's current price is 50,000 USDT. His leverage is set at 10X, and the margin for his current position is 5000 USDT. If Sam increases the leverage, the margin will be reduced accordingly. If the leverage is decreased, the margin will be increased accordingly.

It is important to note that if you choose to copy an elite trader on Bitget to open a position, your margin for copy trading will be shared with your margin for your own positions, providing greater flexibility and convenience.

2. Initial margin

The initial margin is the minimum amount of margin required to open a position, which is displayed as the order cost when placing an order.

Initial margin = (position value ÷ leverage multiple) + estimated opening fee at the time of opening a position.

Any remaining funds after deducting opening fees will be automatically returned to the available balance upon order execution. This mechanism ensures smooth trading and provides traders with a certain level of financial security.

3. Position margin

After opening a position, you can view its margin in Positions under Trade > Futures.

Initial position margin = position value ÷ leverage.

You can also adjust the margin of the position by using the +/- button or by adjusting the leverage.

In conclusion, Bitget's futures margin mechanism offers traders a wide range of choices and flexibility while also emphasizing the importance of risk awareness and effective risk management. A deeper understanding of margin will help traders achieve better results in futures trading.