Derivatives & Risk

What is margin in crypto derivatives?

Margin in crypto derivatives is the collateral a trader posts to open and hold a leveraged position, allowing exposure larger than the cash committed. It functions as a good-faith deposit against potential losses. For example, 10x leverage means 10% margin controls a position ten times its size, so a 10% adverse move can wipe out the deposit. Margin magnifies both gains and losses, which is why leveraged trading carries elevated risk of forced closure. Understanding how margin amplifies downside is one reason many disciplined investors prefer unleveraged allocation, the framing behind Qatobit's research-led approach.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.