What are Margin, Margin Balance, Available Margin, Open Order Margin, Maintenance Margin, Margin Usage, and Effective Leverage?

Margin is the amount of funds a trader deposits with an exchange as collateral to open a position in perpetual trading. This collateral serves as protection for the exchange against potential losses from the trader’s position.

1. Margin Balance

Your Margin Balance is the total amount of funds in your Futures wallet, including:

• Available Margin (funds you can still use to open order)
• Locked Margin (used for positions or open orders)

2. Open Order Margin

This is the amount of margin temporarily locked for pending orders (including limit and stop orders that have not been executed yet).

💡 Example (25x Leverage):

You place a $1,000 limit order with 4% IM = $40 (≈ Rp644,280) locked as Open Order Margin.

3. Maintenance Margin (MM)

This is the minimum margin required to keep a position open. If your account value drops below the MM threshold, the system will liquidate your position to avoid further loss.

💡 Example (25x Leverage, 1% MM):

For a $1,000 position, MM required = $10

If your margin balance falls under this, the position gets liquidated.

4. Available Margin

This is your free-to-use margin, the funds not currently locked in open positions or open orders.

You can use Available Margin to:

• Open new positions
• Cover fees or funding payments
• Place new open orders

Your Available Margin depends on whether the Initial Margin Buffer feature is ON or OFF.

⚙️ When Initial Margin Buffer is ON

• In addition to the Maintenance Margin, a larger portion of your margin is locked for open positions.
• This provides extra safety, as your position has a buffer before reaching the liquidation threshold.
• As a result, your Available Margin will be smaller, but your account is less likely to be liquidated suddenly during volatility.

💡 Example (25x Leverage, Initial Margin Buffer ON):

Opening a $1,000 position → $40 locked. ($10 + $30 Initial Margin Buffer)

If your margin balance is $100, your available margin = $60.

→ More margin locked = less available, but safer.

⚙️ When IM Buffer is OFF

• Only the minimum Maintenance Margin (MM) is locked for open positions.
• You’ll have more Available Margin to open new trades.
• However, this means less protection, your position can hit liquidation faster if the market moves against you.

💡 Example (25x Leverage, IM Buffer OFF):

The same $1,000 position will only lock 1% as MM = $10.

If your margin balance is $100, your available margin = $90.

→ More available margin = more flexibility, but higher risk.

5. Margin Usage

Margin Usage is the percentage of your margin balance currently being used for:

• Open positions
• Open order margin
• Maintenance margin

📈 High Margin Usage → Higher risk of liquidation, less room for market movement.

📉 Low Margin Usage → More available margin, more flexibility to open new positions.

Margin Usage = 100% → No available margin left, your position will be liquidated.

6. Effective Leverage

Effective Leverage shows how much exposure you’re taking compared to your actual margin.

Effective Leverage = Position Size / Margin Balance

💡 Example:

• You open a $1,000 position
• Margin balance = $100 → Effective Leverage = 10x

⚠️ Note: Even if you select 25x leverage, your effective leverage might be lower if you have excess margin. Always monitor this to manage your risk.