Keywords: Calculation of Margin, Margin Rate.
- What is margin?
Margin can be seen as collateral. It means how much risk the trader is willing to take on this particular investment.
- Calculation of Margin
Initial Margin = Value of Open Position / Leverage
Value of Open Position = Avg. Opening Price * Position Amount
- Margin Rate
Cross Margin: Margin Rate = (Available Balance + Fixed Margin + Unrealized PnL) / Position Value
Isolated Margin: Margin Rate = (Fixed Margin + Unrealized PnL）/ Position Value
Available Balance = Account Equity - Used Margin - Frozen Fee of Pending Orders
Fixed Margin = Initial Margin + Adjusted Margin during the Position Holding - Funding Fees
Position Value = Position Amount * Last Mark Price
- Adjust Margin
With isolated margin mode, traders can manually add/remove margin or adjust the leverage to a position;
With cross margin mode, the margin is calculated based on the balance, and the margin can be adjusted by adjusting the balance.
Find us on
Bingbon reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
Trading digital assets and their derivatives is highly leveraged and risky and may result in partial or total loss of account funds. Before conducting spot/contract trading, investors must ensure that they understand the nature and rules of spot/contract trading, and decide whether to participate in spot/contract trading based on their investment experience, goals, financial status, and ability to bear risks.
Bingbon Operation Team