Margin is the amount required in order to enter a position.

With leverage, traders are able to open a position by using only a fraction of the margin that they would otherwise need without leverage. The higher leverage amount a trader uses the lower the margin requirements.

**How is Margin Calculated?**

Margin requirements differ for each market traded on and the amount of leverage used. On the BTC/USD perpetual market, the initial margin for a position is 1%. This means that the minimum required margin needed to open a position is 1% (at 100x leverage).

Maintenance Margin on the BTC/USD perpetual contract is set at 50% of your initial margin.

To calculate the initial margin required in DGTX for one contract, you simply take the price of Bitcoin, divide it by 5 (for each $5 increment), multiply it by 0.1 (0.1 DGTX per tick) and then divide it by the leverage used.

See if you can follow the examples below.

Example 1:

The current Bitcoin price is $8000.

You are using no leverage.

Therefore, the initial margin required to buy a contract is 8000 divided by 5, multiplied by 0.1. The initial margin to buy a single contract in this scenario is 160 DGTX.

Example 2:

The current Bitcoin price is $7000.

You are using 20x leverage.

Therefore, the initial margin required to buy a contract is 7000 divided by 5, multiplied by 0.1 and then divided by 20. The initial margin to buy a single contract in this scenario is 7 DGTX.

Example 3:

The current Bitcoin price is $6000.

You are using 2x leverage.

Therefore, the initial margin required to buy a contract is 6000 divided by 5, multiplied by 0.1 and then divided by 2. The initial margin to buy a single contract in this scenario is 60 DGTX.

For more information on the liquidation process, please see the liquidation tab.