Margin

Margin

All contracts require a certain margin in ABIT, and margin trading also gives you a greater leverage on your contracts.

In the process of margin trading, we suggest you to pay attention to the following parameters:

• Initial Margin: The minimum margin required to open position, and the starting margin rate (opening position value/position margin) also shows your leverage multiple.
• Maintenance Margin: The minimum margin requirement for maintaining a position below which a leveling event or a partial leveling event will be triggered.
• Opening Cost: The total frozen assets required to open position, including the initial margin for opening a position and possible handling fees.
• Actual leverage: The current position includes the leverage ratio of unrealized gains and losses.

ABIT uses a risk limit for all trading accounts, which reduces the possibility of liquidation.

If some users have huge positions, it will bring risks to other users. If their positions are liquidated, other users may experience automatic light reduction. The risk limit increment model will help to avoid this, and it will increase the margin requirement for large position funds.

 

Dynamic risk limit

Each contract has a base risk limit and an incremental amount. These parameters, combined with the base maintenance and initial margin requirements, are used to calculate the full margin requirement for each position.

As the position increases, the maintenance margin and initial margin requirements will also increase. The margin rate will increase or decrease as the risk limit changes.

 

The risk limit level of the current contract:

Risk limit level = (position value + unfilled order value - base risk limit) / incremental amount +1

Note: The risk limit level is rounded up.

 

The margin requirements for each contract product are shown as follows:

Starting margin: IMR = 1/leverage

Maintenance margin: MMR = risk limit level *0.005=[(position value + unfilled order value - base risk limit) / incremental amount +1] *0.005