Let’s assume a trader purchases a 0.1 BTCUSDT perpetual swap contract at the market price of 30,000 USDT with 10x leverage in a long position.
- Notional Value: 30,000 USDT * 0.1 BTC = 3,000 USDT
- Initial Margin: 3,000 USDT * 10% (leverage factor) = 300 USDT
The trader puts up 300 USDT as collateral to hold a long position on BTCUSDT perpetual swap, which is valued at 3,000 USDT.