Margin trading - TrueCurrent Docs

Understand margin, leverage, account equity, margin ratio, available margin, and how they affect liquidation risk.

Margin trading lets you control a position larger than your deposited collateral by using leverage. This page explains how margin is calculated, how your account equity is tracked, and how to read the key metrics in your positions panel.

Key terms

Term	Definition
Margin (M)	The USDC collateral you deposit to back a position
Leverage (L)	The multiplier applied to your margin to determine position size
Notional value (N)	The total underlying value of a financial position at current mark price. Currently denominated in USD.
IMR	Initial Margin Ratio – minimum margin required to open a position
MMR	Maintenance Margin Ratio – minimum margin required to keep a position open
RMR	Reduce Margin Ratio – minimum margin required after reducing a position margin.
Index price	The streamed position reference used as the primary source for displayed Index Price and unrealized P&L
Mark price	The onchain risk reference used for margin checks, liquidation, funding, trigger evaluation, and quote validation
uPnL	Unrealized profit or loss on an open position

Isolated margin

TrueCurrent uses isolated margin for all positions. Each position has its own dedicated margin pool — the collateral you deposit for one trade cannot be consumed by losses on another. What this means in practice:

Your risk on any single position is limited to the margin you deposited for that position
Profits from one open position do not automatically offset losses in another
You can be liquidated on one position even if your other positions are in profit
To protect a position, you must add margin to it directly — there is no account-level margin sharing

This model gives you precise control over per-position risk, but it also means you need to monitor each position independently. See Liquidation for how liquidation price is calculated and how to reduce risk.

Last modified on June 9, 2026

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