Margin

Margin requirements on Sidepit ensure positions are collateralized effectively while avoiding unnecessary capital lockup.


Initial and Maintenance Margins:

  • Initial Margin: A good faith deposit required to open a position (e.g., 0.002 BTC per $500 contract).

  • Maintenance Margin: The minimum collateral to keep the position open (e.g., 0.001 BTC).


Day Trading vs. Carrying Positions:

  1. Day Trading: Requires only the maintenance margin.

  2. Overnight Positions: Reduce available margin by the initial margin requirement at the day’s end.


Restricted Accounts:

  1. If your balance drops below maintenance margin, your account becomes restricted:

    • Restricted accounts can only close positions.

    • Restrictions lift only after end-of-day settlements restore margin levels.

  2. If losses exceed available margin, the account becomes exit-only, and only risk-reducing orders are accepted.

Visual: Margin lifecycle diagram and screenshots from the Sidepit Trading View interface.

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