Thus, if the maximum leverage ratio is 1:1000 and the trader has $1000 in his account, the trader can carry out transactions for the purchase/sale of cryptocurrencies or other financial instruments for an amount 1,000 times greater than his own funds, that is, $1,000,000. Since Inception Is the minimum amount of margin required to open the position. If you exceed your IM requirements - which are displayed as the IM bar at the top of your account - you will not be able to open more positions. If your IM meter exceeds 100%, then your open, non-risk reducing, orders will be cancelled.Note that IM is calculated differently for Futures (Linear, Inverse, Perpetual or Dated) and options. Generally, IM starts with 2.0% (50x leverage trading) or 4.0% (25x leverage trading) and linearly increases by individual coin variables and the position size measured in the underlying coin. A more detailed explanation can be found here:Contract Specifications
Bitcoin futures are only one type of cryptocurrency derivatives contract that involves BTC trading. In addition to Bitcoin futures, there are also Bitcoin options and Bitcoin CFDs that are slightly different, while maintaining the benefits futures bring to traders. Introduction to Risk Management in Crypto Futures Bitcoin bounced 10% on Thursday after touching a late-2020 low earlier in the day as largest crypto exchange Binance walked away from a bailout of FTX, leaving the firm's urgent push to plug a reported $8 billion hole in its finances.