9.What is the margin for futures trading?

In the futures trading market, you can participate in the purchase and sale of a contract by simply posting a small number of collateral assets based on a certain percentage of the contract price; this capital is the margin for futures. After a position is opened, the margin required to hold the position in that contract account will change with the latest transaction price.

Trading contracts in crypto-assets generally operate on a dynamic margin system, where the margin rate at which a trader holds a contract changes with the latest trading price when the price of the contract changes. When the margin rate is too low, it is necessary to cover the margin in time to avoid the forced closing of the contracts held.

At the same time, if you choose a different leverage level when trading, you will need to pay up to a different initial margin level.

Take HTX futures trading as an example, users can choose from 1X to 200X leverage. When choosing 1X, 5X, 10X and 20X leverage, the corresponding initial margin levels are 100%, 20%, 10% and 5% respectively.

Since the user can trade several times or even tens of times the value of the contract by paying only a certain percentage of margin, the margin system for contract trading can improve the efficiency of using funds to some extent.