How do I calculate the collateral I will need?

Minimum Collateral = Open price * Position size * (1 / Leverage)

For example, if you wanted to buy 1 BTC at a price of $50,000 USD using 5X leverage, how much collateral would you need to put up?

Collateral = $50,000 * 1 BTC * (1/5)

Collateral = $10,000 USD (or the equivalent in BTC)

You can also consider it in terms of BTC: the collateral (in BTC) required to buy 1 BTC with 5X leverage.

Collateral = 1 BTC * (1/5)

Collateral = .2 BTC (or the equivalent in USD)

 

Important note
When considering trading on margin, you should determine how the use of margin fits your own investment philosophy. It is important that you fully understand the risks, rules, and requirements involved in trading digital assets on margin. Margin trading increases your level of market risk. You may lose some or all of the collateral you post in connection with a margin trade. Blockchain.com may initiate the sale of digital assets in your account, without contacting you, to meet a margin call. You are not entitled to an extension of time on a margin call. Further details are set out in the Margin user agreement.

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