How margin works on Roxom
Learn how isolated margin, leverage, and collateral work on Roxom's trading platform.
When you open a futures position on Roxom, you put up BTC as collateral (called margin). Roxom uses isolated margin by default, which means each position is independent and has its own dedicated collateral.
What is margin?
Margin is the BTC you commit as collateral to open and maintain a trading position. It determines:
- How large a position you can open (based on leverage)
- When your position gets liquidated (if losses eat into your margin)
All margin on Roxom is in BTC.
Isolated margin: each position is independent
Roxom uses isolated margin mode for all positions. This means:
- Each position has its own dedicated collateral
- If one position is liquidated, your other positions and remaining account balance are not affected
- The maximum you can lose on any single position is the margin assigned to it
Leverage: 1x to 10x
Leverage lets you open a larger position with less collateral. Roxom supports leverage from 1x to 10x.
| Leverage | Initial margin required | Example: 1 BTC position |
|---|---|---|
| 1x | 100% of position | 1 BTC collateral |
| 2x | 50% of position | 0.5 BTC collateral |
| 5x | 20% of position | 0.2 BTC collateral |
| 10x (max) | 10% of position | 0.1 BTC collateral |
Initial margin vs maintenance margin
Initial margin (IM)
The BTC required to open a position. At 10x leverage, you need 10% of the position's value as initial margin.
Maintenance margin (MM)
The minimum BTC required to keep a position open. On Roxom, maintenance margin is 25% of the initial margin.
Example with 10x leverage on a 1 BTC position:
| Amount | |
|---|---|
| Position size | 1 BTC |
| Initial margin (10%) | 0.1 BTC |
| Maintenance margin (2.5%) | 0.025 BTC |
If your losses reduce the equity in that position to the maintenance margin level (margin ratio = 100%), the position is liquidated.
How margin ratio works
Your margin ratio shows how close a position is to liquidation:
Margin Ratio = Maintenance Margin / Position Equity- Low margin ratio: Position is healthy
- Approaching 80%: Warning zone
- 100%: Liquidation is triggered
Key points
- Roxom uses isolated margin: each position is independent
- Leverage goes from 1x to 10x
- Maintenance margin is 25% of initial margin
- Everything is in BTC
- If margin ratio hits 100%, the position is liquidated
- Cross-margin mode is planned for a future release
Need help?
Still have questions? You can speak to Roxy, our AI support assistant, available 24/7 in the chat bubble at the bottom right of your screen.
You can also contact our support team directly at help@roxom.com.
Related articles
Open article
What happens if my position is liquidatedOpen article
How to place and manage an orderOpen article
Last modified on