◇ GLOSSARY
Initial vs maintenance margin
The gap between collateral required to open (initial margin) and the minimum equity to stay open (maintenance margin). That buffer is your room before forced liquidation; higher leverage shrinks it because both are usually defined as fractions of notional.
Initial margin is the gate: notional divided by leverage, roughly. Maintenance margin is the floor under running equity. Everything between is cushion — unrealized profit adds to it, losses and funding eat it.
At 10× with 10% initial and 5% maintenance on a simplified book, a ~5% adverse move can touch liquidation. Traders stare at initial ('I posted $2k') and ignore maintenance ('I need $1k equity to survive').
The gap also explains 'liquidated above my liquidation price' confusion: maintenance triggers first on mark; slippage on the close can fill worse than the price shown on the chart. Model initial for sizing, maintenance for survival.