How margin works

Margin is the collateral behind your position — and it decides how much room a trade has before it's closed.

Initial margin

Initial margin is the collateral required to open a position. With leverage, it is only a fraction of the position's total size.

Maintenance & liquidation

If losses erode your collateral below the maintenance level, the position is liquidated — closed automatically so it cannot go negative.

Managing margin

Lower leverage and extra collateral both give a position more room to survive volatility. Keeping a buffer is how traders avoid being liquidated on a temporary swing.

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Demo clone — this guide is original placeholder content, not Kalshi's, and is not financial advice. Trading perpetual futures involves risk, including the loss of collateral.