Margin

Margin is divided into position margin and starting margin. Position margin is the principal required by users to open a position in contract trading, and starting margin is the minimum deposit amount when trading. Due to the high leverage attribute of the contract, users can trade on a larger scale with the same principal, thereby amplifying gains and losses.

In the position-by-position mode, users can increase or decrease the margin on their positions, but the position margin must not be less than the sum of the starting margin and the closing fee. Position margin ensures that users have sufficient funds to bear potential trading risks.

 

Margin plays an important role in contract trading for the following reasons:

（1）Risk management: Margin ensures that users have sufficient funds to cover potential losses when trading contracts, thereby reducing the risks of exchanges and other users.

（2）Credit guarantee: Margin, as a credit guarantee, ensures that users have the ability to maintain their positions when the market fluctuates.

（3）Trading leverage: Margin allows users to control larger positions with less funds, thereby amplifying potential gains and risks.

 

In full-position mode, all available funds in the user's account are regarded as available margin.

Calculation method of position margin: Position margin = number of open positions × face value × opening price / leverage multiple + number of open positions × face value × opening price × closing fee rate;

 

In position-by-position mode, each position calculates margin separately, and profits and losses do not affect each other.

Position margin calculation method: Opening margin = number of open positions × face value × opening price / leverage + number of open positions × face value × opening price × closing fee rate + added margin - reduced margin;

 

The user uses 100 times leverage and opens a BTC/USDT long position worth 200 USDT (position value = number of open positions × face value × opening price), and the closing fee rate is 0.05%,

then the position margin is: (200 / 100) + 200 * 0.05% = 2.1 USDT