1. What is margin?

The leverage of futures contract transactions is presented by a margin, meaning that you do not need to pay 100% of the fund when conducting transactions. You only need to invest a small number of funds at a certain rate according to the futures value as collateral assets. This fund is called margin.

1) Leverage greatly improves the utilization rate of the fund; high returns are accompanied by high risks.

2) The higher the leverage used by the trader, the lower the required margin.

For example:

Mr. Zhang currently holds 1 EOS/USDT long position, with 2X leverage, and the current position margin is 0.15314844 USDT. If the leverage is increased, the margin will be reduced accordingly, while the margin will be increased accordingly if the leverage is decreased.

2. Opening Margin

Opening margin is the minimum margin amount required when opening positions, in other words, the entrust cost displayed when placing orders.

Opening margin = (position value / leverage multiple) + estimated commission fee when opening a position

When the entrustment is all completed, if any is remaining after deducting the actual opening fee, it will be automatically returned to the available assets.

3. Position Margin

After the position is established, you can check the current position margin in the “positions” of the futures trading interface.

Initial position margin = position value / leverage multiple

After the position is established, you can adjust the position margin through the “+” and “-“; you can also adjust the position margin by controlling the leverage multiple.

4. About the margin rate

USDT Futures margin rate= (position margin + unrealized profit and loss) / position value= (position margin + unrealized profit and loss) / (face value * number of positions * latest marked price)

5. About the maintenance margin rate

To prevent the impact on market liquidity when a large position is liquidated, Bitget’s contract products implement a tiered maintenance margin ratio. The larger the position, the higher the minimum maintenance margin rate, and the lower the maximum leverage multiple that the user could choose.

Isolated margin trading calculated numbers, position level, and the minimum maintenance margin rate separately for each position.

You can view the position information on the trading interface of each future, or click to view the position information.”

Related Articles

Leave a Reply

Your email address will not be published.