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Updated May 2026 — NYXANCE Glossary
Initial margin requirement (IMR) is the minimum amount of collateral you must deposit to open a leveraged position. It is the upfront "deposit" that secures your trade and covers potential early losses before maintenance margin is breached.
Initial margin is distinct from maintenance margin: the former is what you need to open a position; the latter is the minimum you need to keep it open.
Initial margin is expressed as a percentage of the total notional value of the position:
Initial Margin = Notional Position Value × Initial Margin Rate Initial Margin Rate = 1 / Maximum LeverageExamples:
| Leverage | IMR | $50,000 position requires |
|---|---|---|
| 100× | 1% | $500 |
| 50× | 2% | $1,000 |
| 20× | 5% | $2,500 |
| 10× | 10% | $5,000 |
| 5× | 20% | $10,000 |
To open a $100,000 notional BTC perpetual position at 20× leverage on NYXANCE, you would need $5,000 USDT in your account as initial margin.
These terms are related but distinct:
| Term | Meaning |
|---|---|
| Initial Margin | Required collateral to open the position |
| Available Margin | Your account balance minus all currently reserved margin |
| Used Margin | Sum of initial margin across all open positions |
| Margin Balance | Total account equity (balance + unrealized PnL) |
When your [Margin Balance] falls toward your [Used Margin × Maintenance Margin Rate], you approach liquidation.
Before placing an order, the exchange checks:
If either check fails, the order is rejected.
Initial margin is locked (reserved) and no longer available for other trades. In cross margin mode, this lock is "soft" — unrealized PnL from other positions can supplement the margin if needed. In isolated margin mode, the lock is hard.
For very large positions, the initial margin rate escalates with position size. A $10M BTC position may require 20% initial margin (5× max leverage) even if you selected 100× leverage in the interface — the dynamic margin tier overrides the UI selection.
Suppose you want to go long on ETH/USDT perpetual:
Initial Margin Required:
$35,000 × 10% = $3,500 USDTYou need $3,500 free in your account to open this trade. The exchange locks this amount.
If ETH drops to $3,150 (a 10% decline):
Lower leverage means a higher initial margin percentage — which sounds counterintuitive for "reducing" requirements, but it means your position size is smaller for the same collateral. Less notional → smaller position → potentially lower total initial margin needed.
Some exchanges offer reduced IMR for users who hold exchange tokens, have verified KYC, or maintain sustained trading volume (VIP tiers).
Advanced traders can apply for portfolio margin mode, where the exchange calculates net risk across all positions holistically (longs offset shorts). This can dramatically reduce total IMR for hedged books. Portfolio margin is typically available to institutional or verified high-volume traders.
For context, traditional futures markets (CME, ICE) also require initial margin — called SPAN margin — set by the clearinghouse. CME BTC futures initial margin is typically 40–60% of notional, reflecting the risk profile the clearinghouse assigns to crypto assets. Crypto native exchanges offer much higher leverage (and thus lower IMR) because they operate their own risk engine and liquidation system rather than relying on clearinghouse guarantee.
NYXANCE displays your required initial margin in real-time in the order form as you adjust position size and leverage. No surprises. Start trading.
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