Trading Glossary

Essential terms for understanding margin trading and risk management.

Initial Margin

The amount of capital required to open a leveraged position. It acts as collateral for the trade.

Maintenance Margin (MMR)

The minimum amount of equity you must maintain in your account to keep a position open. If your margin falls below this level, liquidation is triggered.

Linear vs. Inverse

Linear (USDT-M): Settled in stablecoins (USDT).
Inverse (COIN-M): Settled in the underlying coin (e.g., BTC).

ROE (Return on Equity)

The percentage of profit or loss relative to your initial margin, inclusive of leverage.