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Frequently Asked Question
2020-11-20 15:27

Q: Can I adjust the leverage multiple in the cross-margin model?


By default, you leverage a position 25x. However, leverage adjustment is supported in the cross-margin model. You can adjust the leverage from 1x to 50x by increasing and reducing the positioning margin.

The system will show the leverages you adjust (i.e., cross-margin 10x) with only two decimal places reserved. When you trade again the leverage used is the leverage of your current position held. To avoid forced liquidation when the leverages are chosen is too high and the forced liquidation process is about to be triggered system will automatically increase the positioning margin using the available margin and de-leverage your position.



Q: Why is there a distinguishable difference in profit and loss before and after I close a position?

To protect the price on Bibox exchange from manipulation, Bibox calculates the unrealized profit and loss using the spot index price. When there is too huge a difference between the strike price on Bibox Exchange and spot index price, then the unrealized profit and loss of your current position are different from your actual profit and loss.

Therefore when there is too huge a difference between the strike price on Bibox Exchange and spot index price, the position you open at this time comes with the potential for huge profit and loss. In the case of Bibox exchange price deviating from the index price by 2% then the unrealized profit and loss of your short position is 2% of what your position values. If you use 40 – 50x leverages you will be exposed to the risks of force liquidation upon opening a position. Bibox exchange does not recommend users to long or short a position when there is a huge basis.



Q: How to calculate how many contracts available to buy or sell?

The number of tradable contract of market price order is calculated at the highest order price that the market price order can buy, therefore the calculated Conts is only for reference. Please refer to the actual available margin balance.



Q: What is the source of the margin fund? What does it do?

The main profit source of the margin fund comes from the difference between position closing price and lower bankruptcy price when the system takes over users’ positions. You can view the detailed assets information in the margin fund page. All contract trading pairs use only one margin fund.



Q: How to close an opened position?

There are two ways to close a position. A, to choose “close position” or “close position with the market price.” B, You can open a contrary position with the same quantity at the upper right of the page. The system will judge it as a new position.



Q: Do I need to transfer different funds when trading different contract types?

No. A single contract account can use USDT as margin to open all contract types simultaneously. You only need to click “Funds Transfer” on the contract trading page.



Q: How to calculate frozen margin?

The frozen margin is the margin plus transaction fee required when you open a position. The order placed when you close a position will not be frozen. You can adjust the leverage whenever you don’t hold a new position.



Q: How to calculate the cost of a position?

Bibox uses the average cost mechanism. If you open positions of 10, 20 and 30 contracts respectively at the price of 3600, 3650 and 3700, then your position opening price is 3666.66. Closing positions will not affect the position opening price. You can view the profit and loss in Transaction Record after you close a position.



Q: How to trade different currency pairs?


You can simultaneously trade different currency pairs when USDT is transferred into your contract account. You only need to choose the currency pair you wish to trade at the left upper corner of the web page. The positions you opened will show in "Position." However, to see the position of the right currency pairs you must switch to the relevant trading page.

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