Skip to content
GetProfitable
Search
Dictionary

Confirmation

One block built on top of the block containing your transaction; more confirmations mean history is harder to reverse.

A transaction included in a block has one confirmation. Each block added after it adds another. Confirmations are a probabilistic measure of safety on chains without instant finality, because reversing your transaction means out-building every block since.

Exchanges publish confirmation requirements per asset, and they differ widely: a chain with fast blocks and low hash-rate may need dozens, while a high-security chain needs a handful.

Example: an exchange requiring 6 confirmations on a ten-minute block-time credits your deposit roughly an hour after you send. If you are racing a margin call, that hour is the real constraint, not the exchange's interface.

Related: block-time, finality, chain-reorg, double-spend

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Margin and leverageA small deposit controlling a much larger position, and the point at which losses trigger a margin call.Position you controlnotional value $100,000your margin deposit: $5,000$100,000 / $5,000 = 20:1 leverageYour deposit absorbs every dollar of loss$5,000$2,500$0Equity leftMARGIN CALLequity has fallen to $2,5000%1%2%2.5%3%4%5%How far the price moves against you
Margin and leverage. A $5,000 deposit can control a $100,000 position, which is 20:1 leverage. Because the loss is measured on the full $100,000, a 2.5% move against you halves the deposit and brings a margin call, and a 5% move uses all of it.

Educational only, not advice. Spotted an error? Post in Site Feedback.