Initial margin refers to the amount required to put down as collateral to enter a leveraged position.

The initial margin is required to enter new derivatives positions or to keep an existing order open. If there are not enough funds in your trading account to cover the initial margin, any open orders will be cancelled.

The formula for initial margin on Interdax is:

**Initial Margin** = (**minimal initial margin percentage** + **position margin multiplier*****maximum absolute position**)***absolute value of open orders that result in position increase**

- The minimal margin percentage is a fixed rate that is applied to orders.
- The position margin multiplier increases the initial margin requirements in proportion with larger position sizes.
- The maximum absolute position is the largest position that can be achieved if a trader’s open orders are filled.
- The absolute value of open orders that result in a position increase is the value of orders that will increase the position size, i.e., the value of the trader’s open orders.

## Initial Margin Example

Suppose you are in a long position of 1,000,000 BTC-PERP contracts and have 10,000 contracts in open buy orders for BTC-PERP. The maximum absolute position is 1,010,000 contracts, and initial margin is required for the 10,000 contracts. However, if there is a long position of 1,000,000 BTC-PERP contracts, but the trader has 1,000,000 contracts in open sell orders, then the maximum absolute position is 0 and no initial margin is required in this case.

Let’s say the trader has 1,000,000 BTC-PERP contracts in a long position and has 10,000 contracts in open buy orders. Suppose the mark price of BTC-PERP is $9,000, the minimal initial margin percentage is 1.00% and the position margin multiplier is 0.000001% (or 1e-8). Then what is the initial margin?

Since the maximum achievable position is 1,010,000 contracts, the initial margin percentage is calculated as:

= *(minimal initial margin percentage + (position margin multiplier*maximum absolute position))*

= (1% + (0.000001%*1,010,000)) = 1% + 1.01%

= **2.01%**

Therefore, the initial margin percentage is 2.01%.

The initial margin is then calculated by multiplying the initial margin percentage with the absolute value of open orders that results in a position increase. Since there are 10,000 contracts in open orders that result in a position increase, the initial margin is equal to roughly 0.0223 BTC:

*Initial Margin = (Initial Margin Percentage*Absolute Value of Open Orders that Results in a Position Increase)*

= (2.01%)*(10,000/9,000)

= (2.01%)*(1.111111)

= **0.0223333311 BTC**

## How Initial Margin is Displayed

The initial margin for an open order is shown by the orange section of the margin wheel.

Click on the margin wheel to zoom in and hover over the orange section to show the initial margin requirement:

Any open orders will be cancelled if the sub-account's available balance falls below the initial margin requirement.

To display the initial margin for a different asset, navigate to the instruments panel and select the trading pair. The margin wheel will display the initial margin for any open positions for that trading instrument.

To view the initial margin requirements across all assets for a selected sub-account, click on Deposit then go to the Balances:

Note: the initial margin requirements are displayed for the selected sub-account. Balances/orders in each sub-account are isolated from each other. To see the initial margin requirements for a different sub-account, go to the account menu and select the sub-account.

## Initial Margin for Instruments on Interdax

The *minimal initial margin percentage* and *position margin multiplier* for all derivatives on Interdax are shown below.

The percentages below can be used for the relevant instrument and inserted into the formula outlined above to calculate the initial margin for a given position:

Instrument |
Minimal Initial Margin Percentage |
Position Margin Multiplier |

BTC-PERP |
1.00% | 0.000001% |

ETH-PERP |
1.00% | 0.000002% |

LINK-PERP-USDT |
1.00% | 0.0001% |

UNI-PERP-USDT |
1.00% | 0.0001% |

AVAX-PERP-USDT |
1.00% | 0.0001% |

FIL-PERP-USDT |
1.00% | 0.001% |