What is margin?

Margin is the funds you put up to open and maintain a leveraged position. It's essentially your collateral, the amount at stake if a trade goes against you.

How margin works

When you open a perps position, you don't need to put up the full value of the trade. You put up a portion, the margin, and leverage does the rest. The size of your margin relative to your position size determines your leverage ratio.

Example: A $200 margin with 5× leverage controls a $1,000 position.

Available balance vs. used margin

Your account has a total balance, but not all of it is always accessible. The funds locked into open positions as margin can't be withdrawn until those positions are closed. Your available balance is what's left over after accounting for any open trades.

Isolated margin

Blockchain.com perps use isolated margin, which means each position has its own separate margin allocation. If one trade gets liquidated, it doesn't affect the funds in your other positions or your wider account balance. This makes risk easier to manage, each trade is self-contained.

Why margin matters

Your margin is the maximum you can lose on a single trade. Managing it carefully, by not over-leveraging and keeping an eye on your liquidation price, is one of the most important skills in perps trading.