Margin is the amount of money you commit to open and maintain a perpetual position.
It acts as collateral for your trade and determines how much market exposure you can access when combined with leverage.
How Margin Works
When you open a position, you don’t pay the full value of the trade.
Instead, you provide a portion of the total position value as margin.
For example:
Margin: $100
Leverage: 10x
This allows you to control a $1,000 position.
Your profit and loss are calculated based on the full position size, not just your margin.
Why Margin Matters
Your margin serves two important purposes:
It allows you to open a leveraged position.
It helps absorb losses if the market moves against your trade.
As losses increase, your available margin decreases.
If your remaining margin falls below the required level, your position may be liquidated.
Margin Is Not a Fee
Margin is not charged by Bayse.
It remains part of your position and is returned when your trade is closed, adjusted for any realised profits, losses, and applicable fees.
Frequently Asked Questions
Is margin the same as my account balance?
No.
Your account balance is the total funds in your account.
Margin is the portion of those funds allocated to a specific position.
Can I increase the margin on an open position?
Depending on the features available on Bayse, you may be able to add additional margin to certain positions.