What Is Margin in Perpetual Trading?

Margin in perpetual trading is the collateral you deposit to open and hold a Crypto Futures position, and it works in two distinct stages. Initial Margin is the amount required to open the position, while Maintenance Margin is the lower amount that must stay locked in place afterward to keep that position open. For example, a $1,000 position opened at 5x leverage needs a $200 Initial Margin to enter, but only a $50 Maintenance Margin has to remain committed once the position is live — the gap between those two figures is your working buffer. This two-stage structure exists because perpetual trading is built on leverage: your margin acts as collateral against a position sized larger than your own capital, giving Pluang a maintained floor against potential losses. Margin connects directly to Margin Level, margin calls, and liquidation — the thinner your buffer above the Maintenance Margin requirement, the closer your account moves toward a margin call, and eventually liquidation if the position keeps losing value.

• Initial Margin and Maintenance Margin serve different jobs — Initial Margin gets you into the position, Maintenance Margin keeps you in it once it's open.
• If your margin balance drops below the Maintenance Margin level, you'll be liquidated unless you add funds first to rebuild your buffer.
• Before liquidation, Pluang tracks your Margin Level on a rising 0%–100%+ scale and issues margin call warnings along the way: an Initial Margin Call once Margin Level passes 50%, and a Final Margin Call once it passes 75%.
• Once margin called, you can't open new positions or place new orders on that contract until you top up margin and bring your Margin Level back down.
• Margin requirements are expressed as a percentage of position value and vary by leverage: higher leverage means a smaller Initial Margin percentage, but the Maintenance Margin floor still has to be respected throughout the life of the position.

Related questions:

Q: What's the difference between Initial Margin and Maintenance Margin?
Initial Margin is the amount needed to open a position; Maintenance Margin is the lower amount that must stay in place afterward to keep that position open. Initial Margin is a one-time entry requirement, while Maintenance Margin is monitored continuously for as long as the position stays open, which is why it's the number tied to margin calls and liquidation risk.

Q: What happens if my margin falls below the Maintenance Margin?
You'll first get a margin call warning as your Margin Level rises past 50% and then 75%; if you don't add margin or reduce your position, it will eventually be liquidated once Margin Level reaches 100%. Adding margin or partially closing the position before that point is what restores your buffer and pulls your Margin Level back down. Waiting too long to act on the warning is what turns a recoverable margin call into a forced liquidation.

Q: Can I trade on a contract after being margin called?
No, not until you add margin — a margin-called account can't open new positions or place new orders on that specific contract. The restriction applies only to that contract until your Margin Level drops back below the call threshold, at which point normal trading resumes on it. Other contracts in your portfolio that aren't margin called continue to trade normally in the meantime.

Q: Does the margin requirement change with leverage?
Yes. Higher leverage lowers the Initial Margin percentage needed to open a position, but the Maintenance Margin floor still applies throughout the position's life regardless of leverage. This means higher leverage reduces your upfront cost to enter but doesn't reduce the ongoing risk of hitting a margin call sooner, since a smaller price move against you has a larger effect on a highly leveraged position's Margin Level.