Glossary
What is initial margin?
Also called: IM, opening margin, margin requirement
Updated Ninja Terminal team
Definition
Initial margin is the amount of collateral an exchange requires you to commit to open a leveraged position. It equals the position's notional value divided by the leverage you choose. A 10,000 USD position at 10x leverage needs 1,000 USD of initial margin. The exchange can reject the order if available balance is lower.
Initial margin is the entry requirement. Maintenance margin is the smaller amount you must keep after the position is open.
How is it calculated?
initial margin = position size x price / leverage
Hyperliquid documents it as position size x mark price / leverage, with leverage as a whole number from 1 up to the asset’s maximum. Other venues use the same idea but may add fees or use tier rules for large positions.
Example: you buy 0.2 BTC at 50,000 with 20x leverage.
- Notional: 0.2 x 50,000 = 10,000 USD
- Initial margin: 10,000 / 20 = 500 USD
At 5x, the same position needs 2,000 USD.
What affects the requirement?
- Your chosen leverage and the asset’s maximum leverage.
- The margin mode. In isolated margin, the initial margin is locked to that position.
- Open orders. Some venues reserve margin for resting orders, so available balance can fall before any fill.
Where does it appear in Ninja Terminal?
The order form shows the margin mode and leverage for the selected market, and the leverage dialog lets you change leverage where the venue allows it. Quick Entry safety checks cover margin ratio and equity reserve.
Frequently asked questions
Is initial margin the same as the amount I lose?
No. It is collateral you lock to hold the position. Your loss depends on the price move and size, and can reach the full margin if the position is liquidated.
Can I add more margin than the initial margin?
On venues with isolated margin you can usually add margin to a position to move the liquidation price. The options depend on the venue and margin mode.