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Margin Calculation

Margin Calculation

Initial Margin?

Margin is a good-faith deposit or an amount of capital one needs to post or deposit to hold the position. It is to facilitate leveraged positions.

(1) USDT based margin formula :
Initial Margin = Multiplier * Quantity * Price / Leverage

(2) Crypto based margin formula :
Initial Margin = Multiplier * Quantity / (Leverage * Price)

Example:> Assuming 10,000USDT per BTC with 10:1 leverage trading 2,000 contracts
USDT Swap Contract Initial Margin
1 BTC Contract Value 0.0001BTC
Price 10,000USDT
Quantity 2,000 Contracts
Leverage 10 : 1
Contract Value Multiplier x Quantity = 0.0001 BTC * 2,000
Contract Value = 0.2 BTC
Initial Margin multiplier * quantity * price / leverage
0.0001 * 2000 * 10,000 / 10 = 200USDT
2,000 Contracts
translate to 0.2 BTC
in Contract Value
When BTC trades for 10,000USDT you need
200USDT for initial margin at 10:1 leverage.
"multiplier * quantity * price / leverage"
Coin based Swap Contract Initial Margin
1 BTC Contract Value 1USDT
Price 10,000USDT
Quantity 2,000 Contracts
Leverage 10 : 1
Contract Value Multiplier x Quantity = 1 USDT * 2,000
Contract Value = 2,000 USDT
Initial Margin multiplier * quantity / (leverage * price)
1 * 2000 / (10 * 10,000) = 0.02BTC
2,000 Contracts
translate to 2,000 USDT
in Contract Value
When BTC trades for 10,000 USDT you need
0.02 BTC for initial margin at 10:1 leverage.
"multiplier * quantity / (leverage * price)"
Initial Margin Calculator

You can use the below table to calculate initial margin requirement based on the real time prices of the quote currencies.


USDT Base Contract Initial Margin

BTC Base Contract Initial Margin

Maintenance Margin?

Maintenance Margin Rate (MMR): Minimum margin rate used to maintain the current position. Different maintenance margin rate may result in different liquidation price.
If the underlying index price reaches the liquidation price, the deleverage/liquidation procedure will be triggered.

(1) USDT Based Contracts
Maintenance Margin = Position Margin + Unrealized P&L

(2) Coin Based Contracts
Maintenance Margin = Position Margin + Unrealized P&L

Example:> Assuming 10,000USDT price with 10:1 leverage trading 1,000 contracts
USDT Contract Maintenance Margin
1 Contract Value 0.0001BTC P&L Calculation for open positions:
Example> Long Position loses value to 9,136USDT from 10,000USDT purchase price.
Price 10,000USDT Position Margin Price * Multiplier * Quantity / Leverage
Quantity 1,000 Contracts 10,000 * 0.0001 * 1000 /10 = 100USDT
Leverage 10 : 1 Unrealized P&L (Price * Multiplier * Quantity) – (Average Price * Multiplier * Quantity)
Margin rate 0.5% (9,136 * 0.0001 * 1,000) – (10,000 * 0.0001 * 1,000) = -86.4USDT
Maintenance
Margin
Position Margin + Unrealized P&L Margin rate (Position Margin + Unrealized P&L) / Value of Position
100-86.4= 13.6USDT (100- 86.4) / (9,136 * 0.0001 * 1,000) =13.6/913.6 = 0.015%
Position margin rate falling below the maintenance
margin requirement may result in margin call
where the positions can be liquidated.
Position Margin Rate (0.015%) is lower than 0.5%
(Maintenance margin requirement):
may result in triggering margin call.
BTC Based Maintenance Margin
1 Contract Value 1USDT P&L Calculation for open positions:
Example> Long Position loses value to 9,136USDT from 10,000USDT purchase price.
Price 10,000USDT Position Margin Multiplier * Quantity / Price * Leverage
Quantity 1,000 Contracts 1 * 1,000 / 10,000 * 10 = 0.01BTC
Leverage 10 : 1 Unrealized P&L (Multiplier * Quantity / Average Price) – (Multiplier * Quantity / Current Price)
Margin rate 0.5% (1 * 1,000 / 10,000) – (1 * 1,000 / 9,136) = -0.00946 BTC
Maintenance
Margin
Position Margin + Unrealized P&L Margin rate (Position Margin + Unrealized P&L) / Value of Position
0.01 - 0.00946 = 0.00054BTC (0.01 - 0.00946) / (1 * 1,000 / 9,136 * 10) = 0.049%
Position margin rate falling below the maintenance
margin requirement may result in margin call
where the positions can be liquidated.
Position Margin Rate (0.049%) is lower than 0.5%
(Maintenance margin requirement):
may result in triggering margin call.
Maintenance Margin Requirement
Underlying Risk Limits Maintenance Margin Minimum Margin Max Leverage
BTC 1,000,000 0.5% 1.0% 100:1
2,000,000 1.0% 2.0% 50:1
3,000,000 1.5% 3.0% 30:1
4,000,000 2.0% 4.0% 25:1
ETH 100,000 1.0% 2.0% 50:1
300,000 1.5% 2.5% 40:1
500,000 2.0% 3.0% 33:1
700,000 2.5% 4.0% 25:1
EOS 100,000 1.0% 2.0% 50:1
300,000 1.5% 2.5% 40:1
500,000 2.0% 3.0% 33:1
700,000 2.5% 4.0% 25:1
LTC 100,000 1.0% 2.0% 50:1
300,000 1.5% 2.5% 40:1
500,000 2.0% 3.0% 33:1
700,000 2.5% 4.0% 25:1
XRP 100,000 1.0% 2.0% 50:1
300,000 1.5% 2.5% 40:1
500,000 2.0% 3.0% 33:1
700,000 2.5% 4.0% 25:1
BCH 100,000 1.0% 2.0% 50:1
300,000 1.5% 2.5% 40:1
500,000 2.0% 3.0% 33:1
700,000 2.5% 4.0% 25:1

Position margin rate falling below the maintenance margin requirement may result in margin call where the positions can be liquidated.