- What is Margin?
Users only need to deposit a small amount of money at a certain rate according to the contract price as a financial guarantee for the fulfillment of the contract, and then they can participate in the trading of the contract.
-Net Margin
The current multiple speed system adopts the net margin model. After users open positions, their accounts will have only one direction (i.e., long or short) for positions in the same contract. The risks and returns of all positions held in the same direction will be calculated together, and the margin required for holding positions will be calculated based on the average opening price. The formula is as follows:
Occupied Margin = (Futures Multiplier * Number of Futures Held) / Leverage Multiplier / Average Opening Price
- Margin And Leverage
Leverage is a common financial trading system. “Leverage” allows investors to trade the amount of money is enlarged at the same time, but also allows investors to obtain the benefits and bear the risk of increased.
Taking a cross margin as an example, when a user goes long/short a certain number of positions, the required margin = position value/selected leverage multiplier
Initial Margin Ratio: = 1 / Leverage Multiplier
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