Will futures margin evaporate into thin air? You need to know these 7 black holes.

Those engaged in futures trading know that Margin is like the blood of your account—it determines how large your position can be and when you will face Liquidation. However, many Newbies do not understand why their Margin keeps decreasing.

The reasons are nothing more than these few:

1. Opening a position itself requires a deduction of funds

To open a BTC futures position, you need a 10% Margin. For example, if the order is $10,000, you need to freeze $1,000 first. This amount cannot be moved during your holding period and will be returned only upon liquidation. This is a basic rule that many people overlook.

2. Market moves in reverse, unrealized losses deducted directly

This is the most common scenario. You go long on BTC, and as a result, BTC drops, causing the available Margin in your account to decrease automatically. The greater the market volatility, the greater the pressure on your Margin. This is also why you need to set a stop-loss—otherwise, your Margin will be gradually eroded.

3-4. Fee + Funding Rate

Each transaction incurs a fee, and if the funding rate moves unfavorably, it will also be deducted from your Margin. Especially concerning the funding rate, if your available Margin is insufficient, the system will directly deduct from the position Margin, which is dangerous—it will pull your Liquidation price closer to the current price.

5. Liquidation

Once the Margin drops below the maintenance margin line, the exchange will directly liquidate your position. At this time, you not only lose money but also have to bear the liquidation loss.

6-7. Transfer + Reward Expiration

Did you transfer money from your futures account to your spot account? The available Margin will be reduced, which may affect your positions. Also, if there is a time limit on the futures rewards, they will be automatically deducted after expiration.

How to live longer?

Must use stop-loss——Don’t be greedy, set a loss point, and let the system help you cut off risks.

Don't be too greedy with leverage——20x and 100x risk are completely different things.

Using Isolated Margin Mode - Newbies are advised to use the isolated mode, so that if a single position is liquidated, it will not affect other positions.

Keep an eye on the maintenance Margin rate——If you are close to the liquidation line, immediately add margin or reduce positions.

In simple terms: Margin management = Risk management = Surviving to make money. Most people face liquidation not because they misread the market, but because their margin management is inadequate.