/biz/ - Business & Finance

>>49330755
It's actually a lot more straightforward than most crypto perpetual contracts. Using the micro Nasdaq as an example in pic related. In order to buy 1 contract to day trade you have to have $100 in your account. If you want to hold that contract overnight[1] you need $1550 in your account. A micro Nasdaq contract has a notional value at this moment of $25,792 so if you only had $100 in your account you could theoretically open a position of 1 contract giving you 257x leverage. Of course you'd get liquidated instantly on the first down tic so you probably don't want to max out your leverage in this way. If you want to hold over night you need the $1550 overnight margin giving you a theoretical max leverage of around 16x. And that's basically it. As long as you have that day trade margin or overnight margin in your account you can hold as many contracts as your margin allows. If your contracts start losing money then the losses (50 cents a tic in the case of micro Nasdaq) go against your margin and if you dip under the day trading margin during the day you get liquidated

[1] Overnight in this case means either the 1 hour between 5pm and 6pm eastern time during weekdays or over the weekend between 5pm Friday evening and 6pm Sunday evening