How to Trade Crypto Futures with INR Margin on Mudrex
INR margin crypto futures allow you to use Indian Rupees as collateral to open leveraged futures positions. Instead of converting INR into stablecoins, you can deposit INR directly and track your profit and loss in INR.
With INR Margin now live on Mudrex Futures, you can trade crypto derivatives in an INR-first environment designed specifically for Indian users. This guide explains how it works, what risks to understand, and how to trade responsibly.
Quick Answer: What Is INR Margin in Crypto Futures?
INR margin means your collateral is held in Indian Rupees.
You can open leveraged futures positions without holding USDT.
You can go long or short on supported contracts.
Your profit and loss are displayed in INR.
Leverage increases both potential returns and potential losses.
On Mudrex, INR margin changes the collateral currency. The mechanics of leverage and liquidation remain the same as standard futures trading.
What Does INR Margin Mean on Mudrex Futures?
INR margin crypto futures on Mudrex are derivative contracts where the collateral used to open and maintain your leveraged position is denominated in INR.
Traditionally, futures trading required:
Depositing INR.
Converting INR to USDT.
Using USDT as margin.
With INR Margin on Mudrex:
You deposit INR directly into your INR wallet.
That INR becomes your futures collateral.
Your PnL is tracked in INR.
This aligns your trading capital with the currency you already use daily.
What Changes With INR Margin and What Does Not?
It is important to understand what INR Margin affects.
INR Margin changes:
The currency of your collateral.
The currency in which your PnL is displayed.
The clarity of your margin tracking.
INR Margin does not change:
How leverage works.
How liquidation works.
The volatility of crypto markets.
The risk associated with derivatives trading.
INR-first trading simply improves operational clarity. It does not reduce leverage risk.
INR Margin vs INR-Settled Futures on Mudrex
These terms may appear similar, but they refer to different aspects.
Feature
INR Margin Futures on Mudrex
INR-Settled Futures
Collateral
INR
May vary
PnL Settlement
INR
INR
Key Benefit
Direct INR collateral
INR-based payout clarity
Risk Structure
Standard leveraged futures
Standard leveraged futures
Understanding Margin on Mudrex Futures
Margin is the amount of capital you commit to open a leveraged position.
When you trade futures on Mudrex:
You allocate initial margin.
You select leverage.
Your effective exposure increases relative to your margin.
How Leverage Multiplies Your Exposure
Suppose you:
Allocate ₹20,000 as margin.
Choose 5x leverage.
Your effective position size becomes:
₹20,000 × 5 = ₹1,00,000
A 1 percent price move impacts your position as if you had invested ₹1,00,000.
This amplification applies to both profits and losses.
Initial Margin vs Maintenance Margin on Mudrex
When you open a position:
Initial margin is locked.
As market prices fluctuate:
Your unrealized PnL changes.
Your margin balance adjusts accordingly.
If your margin falls below the required maintenance level, your position may be liquidated automatically.
Maintenance margin acts as a safety threshold to protect against negative balances.
Cross Margin vs Isolated Margin: Which Is Safer?
Margin mode determines how your collateral is allocated across positions. The choice directly affects your risk exposure.
In cross margin mode:
All available funds in your futures wallet act as shared collateral.
Losses from one position can be used to fund other positions.
Your entire wallet balance supports open trades.
Risk implication: Cross margin reduces the chance of immediate liquidation for a single trade because it can draw from your full balance. However, if the market moves sharply against you, multiple positions can collectively drain your entire wallet.
Cross margin spreads risk across positions, but also spreads losses.
In isolated margin mode:
You allocate a fixed amount of margin to a specific position.
Only that allocated amount is at risk.
Other funds in your wallet remain protected.
Risk implication: If the trade moves against you, only the isolated margin assigned to that position can be liquidated. The rest of your capital remains unaffected.
Isolated margin contains risk within defined boundaries.
Which Is Safer?
For most traders, especially beginners, isolated margin is safer because:
It limits maximum loss per trade.
It prevents a single mistake from affecting total capital.
It enforces structured position sizing.
Cross margin may be used by experienced traders who actively manage multiple correlated positions and monitor exposure continuously. However, it requires stricter discipline and risk awareness.
From a risk-control perspective, isolated margin provides clearer downside protection.
What Is Liquidation on Mudrex Futures?
Liquidation is the automatic closure of your position when your margin becomes insufficient to support your leveraged exposure.
Example:
Margin: ₹10,000
Leverage: 10x
Position size: ₹1,00,000
If the market moves sharply against your position and your losses approach your margin balance, Mudrex’s system may close your trade to prevent further loss.
Liquidation results in the loss of allocated margin for that position.
How to Trade INR Margin Crypto Futures on Mudrex
INR Margin is currently supported only for Futures trading on Mudrex.
Mudrex maintains two separate wallets:
INR wallet
USDT wallet
Funds cannot be transferred directly between these wallets. This separation ensures clear accounting and structured trading.
Step 1: Deposit INR Into Your Mudrex Wallet
You can fund your INR wallet using supported payment methods such as UPI or bank transfer.
Your deposited INR becomes your futures collateral.
Step 2: Enter the Futures Section
Open the Mudrex app and tap the Futures icon in the bottom navigation bar.
Step 3: Switch to INR Mode
Use the currency toggle at the top left of the Futures interface.
Select INR (₹) to activate INR Margin trading.
This ensures your trades use INR collateral instead of USDT.
Step 4: Choose Your Contract and Position Size
Select the futures contract you wish to trade.
Position Size = Margin × Leverage
For example:
₹15,000 at 4x leverage = ₹60,000 exposure
Your exposure determines how much your PnL fluctuates per price movement.
Step 5: Select Leverage Carefully
Lower leverage:
Offers more tolerance for volatility.
Reduces liquidation probability.
Higher leverage:
Increases potential returns.
Reduces your margin buffer.
For most users, starting between 2x and 5x is prudent.
Step 6: Choose Long or Short
Go long if you expect price to rise.
Go short if you expect price to fall.
Step 7: Enable Isolated Margin and Set Stop-Loss and Take-Profit
Before confirming your trade:
Select isolated margin mode.
Set a stop-loss to limit downside.
Set a take-profit to lock gains.
These tools are essential for structured risk control.
Step 8: Monitor Margin Ratio, Funding, and Liquidation Level
Once your position is active, monitor:
Unrealized PnL in INR.
Margin ratio.
Liquidation price.
Funding rate impact.
Because everything is displayed in INR, you can clearly assess capital impact without currency conversion.
Step 9: Close Your Position
To exit:
Place an opposite order of equal size.
Confirm the trade.
Your realized profit or loss is reflected in your INR wallet.
You may withdraw INR according to Mudrex withdrawal policies.
Understanding Leverage in Crypto Futures (Including What 25x Really Means)
Leverage allows a trader to control a position larger than their actual capital by committing only a fraction of the total value as margin.
The core formula is:
Position Size = Margin × Leverage
Leverage amplifies outcomes. It increases both potential gains and potential losses. It does not improve accuracy or reduce risk; it only magnifies exposure.
What Does 25x Leverage Actually Mean?
Suppose:
Margin = ₹10,000
Leverage = 25x
Using the formula:
Position Size = ₹10,000 × 25
Position Size = ₹2,50,000
This means you are controlling a ₹2,50,000 position with only ₹10,000 of capital.
Your profit and loss are calculated on ₹2,50,000, not ₹10,000.
This distinction is critical.
How Profit and Loss Work at 25x
Assume you opened a ₹2,50,000 position using a ₹10,000 margin.
If You Go Long (Expecting Price to Rise)
If the price increases by 2%:
Profit = ₹2,50,000 × 2%
Profit = ₹5,000
Your margin increases from ₹10,000 to ₹15,000 (before fees and funding).
If price decreases by 2%:
Loss = ₹5,000
Your margin reduces from ₹10,000 to ₹5,000.
If You Go Short (Expecting Price to Fall)
If price falls by 2%:
Profit = ₹5,000
If price rises by 2%:
Loss = ₹5,000
Leverage applies symmetrically. Direction changes. Risk does not.
Why High Leverage Leads to Faster Liquidations
At 25x leverage, a relatively small price movement can significantly erode your margin.
A roughly 4% adverse move can wipe out most of your initial margin (excluding maintenance margin adjustments).
Liquidation happens quickly because:
Your margin buffer is thin.
Maintenance margin thresholds must be maintained.
Fees and funding payments further reduce usable capital.
The higher the leverage, the smaller the price move required to trigger liquidation.
This is why experienced traders often prefer moderate leverage despite access to higher multiples.
Understanding Fees, Funding Rates, and Pricing Factors (The Hidden Costs of Futures Trading)
Successful futures trading depends not only on price direction but also on cost awareness.
Ignoring trading costs can turn a profitable trade into a loss.
Trading Fees: Maker vs Taker Orders Explained
There are two primary order types in futures markets:
Maker Orders
Add liquidity to the order book.
Usually placed as limit orders.
Often incur lower fees.
Taker Orders
Execute immediately against existing orders.
Usually placed as market orders.
Often incur slightly higher fees.
You pay fees when entering and exiting a position.
At high leverage, fees represent a percentage of the full position size, not just your margin. This increases their impact.
Frequent trading compounds these costs.
Funding Rates: The Cost of Holding a Perpetual Position
Perpetual futures contracts do not expire. To keep futures prices aligned with spot prices, funding payments occur periodically.
If funding is positive:
Long traders pay short traders.
If funding is negative:
Short traders pay long traders.
Funding is charged at fixed intervals (for example, every few hours, depending on the exchange).
If you hold a position through multiple funding cycles, these payments accumulate and directly affect your net return.
This is why futures are often used for short- to medium-term strategies rather than passive long-term holding.
Understanding the INR Reference Price and Contract Valuation
Even when using INR as margin, it is important to understand how the contract price is derived.
Key points to check before entering a trade:
The contract’s displayed price.
The mark price used for liquidation calculations.
Your liquidation price.
The margin requirement at your selected leverage.
Crypto markets are globally priced, often referencing USD-based benchmarks. Even in INR-margin systems, underlying pricing mechanics may reflect global markets.
Understanding how your position is valued helps avoid confusion during periods of volatility.
Well-structured futures trading requires clarity in three areas:
How leverage multiplies exposure.
How liquidation thresholds are triggered.
How fees and funding affect net returns.
Without mastering these mechanics, leverage becomes speculation rather than strategy.
Why Trade INR Margin Futures on Mudrex?
For Indian traders, the experience of trading matters just as much as the instrument itself. INR margin futures are not only about leverage, but they are also about clarity, operational simplicity, and structured risk management.
Let us understand what this means in practical terms.
An INR-First Trading Experience
Most global futures platforms operate in USDT or USD terms. For Indian users, this creates additional layers of friction.
These layers include-
Converting INR to stablecoins
Tracking PnL in a foreign-denominated unit
Mentally translating returns back into INR
With INR Margin on Mudrex:
You deposit and withdraw in INR.
Your margin is held in INR.
Your profit and loss are displayed in INR.
This eliminates unnecessary conversion steps and reduces cognitive load during volatile market conditions.
Risk Tools Traders Actually Need
Futures trading is inherently leveraged. What differentiates a structured trading environment from a speculative one is the availability and use of risk controls.
Effective futures trading requires:
Adjustable leverage selection
Isolated and cross-margin modes
Clear display of liquidation price
Stop-loss and take-profit functionality
Transparent margin ratio tracking
These tools help traders define:
Maximum acceptable loss
Target reward levels
Capital allocation per position
The goal is not to eliminate risk; that is impossible in leveraged markets. The goal is to quantify and control it.
An INR-margin setup combined with visible risk metrics supports disciplined decision-making.
Trust and Operational Clarity
In derivatives trading, trust is not built on marketing claims but on operational transparency.
Important factors traders should evaluate on any platform include:
Clear segregation of wallets (for example, INR and USDT separation).
Transparent fee structures.
Defined liquidation mechanisms.
Consistent contract pricing methodology.
Structured onboarding and identity verification processes.
Mudrex’s INR Margin on Futures operates with separate INR and USDT wallets, ensuring capital accounting remains distinct. This separation reduces confusion and supports clean tracking of funds.
The broader objective is to create an INR-native ecosystem where pricing, margin, and performance reporting align with how Indian users manage capital.
Tax Awareness and Record-Keeping in Futures Trading
Futures trading creates financial records every time you open or close a position. Because leveraged trades involve funding payments and fees, accurate tracking becomes essential.
Maintain clear records of:
Entry and exit prices
Position size and leverage
Funding payments
Trading fees
Deposits and withdrawals
Organized documentation helps you assess true profitability and simplifies financial reporting. Since the tax treatment of crypto derivatives can vary, consult a qualified tax professional for guidance.
Discipline in trading should extend beyond risk management to record-keeping as well.
Risk Management Principles for Mudrex Futures Traders
Start with small allocations.
Use conservative leverage.
Prefer isolated margin mode.
Always set stop-loss levels.
Avoid trading during extreme volatility without preparation.
Focus on highly liquid contracts initially.
Never risk capital you cannot afford to lose.
Glossary of Key Terms
Margin: Collateral used to open a leveraged futures position.
Leverage: Multiplier that increases exposure relative to margin.
Liquidation: Automatic closure when margin falls below the required level.
Funding Rate: Periodic payment between long and short traders.
Maintenance Margin: Minimum balance needed to keep a position open.
Isolated Margin: Margin restricted to one position.
Cross Margin: Shared margin across multiple positions.
INR margin crypto futures on Mudrex simplify derivatives trading by allowing you to use Indian Rupees directly as collateral. With INR Margin now live on Mudrex Futures, you can deposit, trade, and track performance in INR without stablecoin-heavy workflows.
However, leverage amplifies risk. Understanding margin requirements, liquidation mechanics, funding costs, and disciplined risk management is essential before trading. When used responsibly, INR Margin on Mudrex can provide a structured and transparent way to access crypto derivatives.
Explore INR Margin Futures directly on Mudrex and experience an INR-first approach to leveraged crypto trading.
FAQs
1. What are INR margin crypto futures?
INR margin crypto futures are derivative contracts where you use Indian Rupees as collateral to open leveraged positions. Your profit and loss are calculated and displayed in INR, while the core mechanics of futures trading remain the same.
2. Is INR margin safer than USDT margin?
The level of risk depends on leverage, not the margin currency. INR margin improves clarity for Indian traders, but it does not reduce liquidation or volatility risk.
3. What does 25x leverage mean?
25x leverage means your position size is 25 times your margin. For example, ₹10,000 at 25x gives you exposure of ₹2,50,000, so small price movements significantly impact your capital.
4. How does liquidation happen in futures trading?
Liquidation occurs when your losses reduce your margin below the required maintenance level. The system automatically closes your position to prevent further losses.
5. What is the difference between isolated and cross margin?
Isolated margin limits risk to the amount allocated to a specific trade. Cross margin uses your entire wallet balance to support positions, increasing overall exposure.
6. Do funding rates apply to INR margin futures?
Yes. Funding payments apply to perpetual futures regardless of whether margin is in INR or USDT and can affect your net profit if you hold positions for longer periods.
7. Why did Mudrex launch INR margin on futures first?
Futures trading requires constant margin and PnL tracking, which benefits most from INR clarity. Launching INR margin on futures aligns with Mudrex’s INR-first investing approach.
Siri is a writer venturing into the exciting realms of blockchain technology, cryptocurrency, and decentralized finance (DeFi), eager to explore the transformative potential of these innovations. She brings a unique perspective that bridges traditional industries and cutting-edge technology, often infused with a touch of humor through memes. She has a rich background in real estate and interior design, having previously contributed to NoBroker, where she crafted blogs and assets on these topics.
