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Graded Margin System Mode
2021-02-22 05:51

Participating in all contracts on the platform requires a certain amount of margin, and margin trading also enables your contracts to have greater leverage. In the process of margin trading, you need to focus on the following points:

Initial Margin:The minimum margin required to be paid when a trader opens a position, and the initial margin rate (open position value/position margin) also represents your leverage multiple.

The initial margin is generally 1% of the value of the position when the position is opened. When the position is too heavy, it will follow the gradient of the risk limit.

Maintenance Margin:The minimum margin requirement to maintain a position. When the margin amount is lower than this ratio, a liquidation or partial liquidation will be triggered.

The maintenance margin is 0.5% of the position value when the position is opened. When the position is too heavy, it will follow the gradient of the risk limit.

Open Position Cost:The total frozen assets required by a trader to open a position include the initial margin for opening a position and possible transaction fees.

Actual Leverage:The current position contains unrealized profit and loss leverage


Cross Margin

Cross margin refers to the use of all available balance in the contract account as margin to avoid liquidation. The realized profits of any other positions (including other cross-trading pairs) can help increase margin on losing positions. That is, the margin is shared between positions. When needed, the position of a contract will withdraw more margin from the account balance to avoid liquidation.

For a cross position, the liquidation price is not fixed because multiple trading pairs share the margin. Whether to liquidate a position or not, you need to refer to the overall position risk rate. If the overall position risk rate is lower, the less likely it is to liquidate the position. The higher the overall position risk rate, it is approximately close to liquidation. When the risk rate of the whole position reaches 100%, all positions of the cross position will trigger a liquidation.

Cross position risk rate = ∑all the maintenance margin of the cross positions / (available balance + ∑all the holding margin of the cross positions + ∑all unrealized profit and loss of the cross positions)*100%   


Fixed Margin

Fixed margin means that the margin allocated to a certain position when a position is opened is controlled within a certain amount. If the margin of the position is lower than the maintenance margin level, the position will be liquidated. Through the fixed margin mode, you can limit your maximum loss to the initial margin used by the position.

Please note that under turbulent market conditions, you may experience liquidation more quickly due to insufficient margin. When a position is liquidated, any of your available balance will not be used to increase the margin of this position.

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