Initial Margin is the amount of collateral required to open a position for Leverage trading.

To calculate the initial margin, the system will take the Contract value/Leverage. The initial margin rate depends on the leverage used. Assuming you are using 100x leverage for 100 BTC contract value, you would only need to invest 1 BTC as your initial margin (1/100).

For example:

A trader buys 12,000 BTCUSD contracts at 8,000 USD with 50x leverage.

= 12,000/( 8,000 x 50)

= 0.03 BTC

The initial margin for this position is 0.03 BTC.