Tools
Textbook initial margin
Initial margin equals notional divided by leverage.
Method
Notional here is the position value you type, in quote currency. The result is the textbook isolated initial margin. It is not maintenance margin, not a cross-wallet equity figure, and not the price at which an exchange would liquidate the position.
Assumptions
- Exchanges add maintenance margin, fees, funding and collateral haircuts. Those are not in this division.
- A separate page estimates isolated liquidation distance from numbers you type. It is not an exchange liquidation engine.