Margin
DeFi
Borrowed funds used to increase position size and leverage.
Margin trading uses borrowed capital to increase exposure. It raises potential gains and losses and can trigger liquidations if collateral falls. Learn the rules, start small, and write your exit plan before you enter.
Frequently asked questions
What is initial vs maintenance margin?
Initial is the starting collateral you need. Maintenance is the minimum you must keep to avoid liquidation.How do funding rates affect margin trades?
On perpetuals, funding payments move between longs and shorts. They impact your PnL over time.How do I manage risk?
Set clear stop levels, avoid max leverage, and size positions so a loss is tolerable.