What Is a Maintenance Margin In Crypto Trading?

A maintenance margin is the amount of collateral a trader must hold to maintain an open position in a margin trading account. It is a percentage of the total value of the position and is typically set by the exchange. For example, if a trader wants to open a long position on BTC/USD with a leverage of 3x, the exchange might require a maintenance margin of 30%. This means the trader would need to hold 0.3 BTC as collateral to…