Excuse me, could you please clarify for me what exactly the maintenance margin in Hyperliquid represents? As I understand, it's a crucial aspect of trading on the platform, but I'm unsure of its specific function and how it impacts my trading positions. Is it related to the minimum balance required to maintain open positions, or does it serve a different purpose? I'd appreciate any insights you could provide to help me better understand this concept.
7 answers
Michele
Wed Oct 02 2024
It represents the minimum equity required in a trader's account to maintain a position, preventing liquidation.
BlockchainBaron
Wed Oct 02 2024
This margin is directly tied to the leverage ratio employed by the trader.
CryptoKing
Wed Oct 02 2024
The maintenance margin is calculated as half of the initial margin at maximum leverage.
Martino
Wed Oct 02 2024
The concept of maintenance margin in cryptocurrency trading is crucial to understanding risk management.
Bianca
Wed Oct 02 2024
The maximum leverage ratio can vary significantly, ranging from 3x to 50x depending on the asset and exchange.