# Margin

> The capital you put up to open and maintain a leveraged position.

Canonical URL: https://fudfomo.co/glossary/margin
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Margin is the collateral that backs a leveraged trade. Initial margin is what you need to open the position; maintenance margin is what you have to keep posted to avoid liquidation.

If the position moves against you and your margin falls below the maintenance level, the exchange will start liquidating until you top up or the position is closed. Cross margin pools the margin across all positions, while isolated margin walls each position off.

## Related terms

- [Leverage](https://fudfomo.co/glossary/leverage): Trading with borrowed funds, so a small move in the price has a much bigger effect on your position.
- [Liquidation](https://fudfomo.co/glossary/liquidation): When a borrower's collateral is sold off automatically because their loan has fallen below the safety threshold.
- [Perpetual Futures](https://fudfomo.co/glossary/perpetual-futures): A futures contract with no expiry date. Common in crypto, kept in line with the spot price by funding payments.
- [Collateral](https://fudfomo.co/glossary/collateral): An asset you lock up to back a loan. If the loan is not repaid, the collateral can be taken.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co