Cross Margin

Cross margin is a way of trading with the entire available Wallet Balance. The maximum contract size of the cross margin is determined by the maximum leverage allowed for a trading pair. Leverage depends on the initial margin of the position. In other words, the larger the initial margin, the lower the leverage used by the traders. In addition, the position is closed when the position margin reaches the maintenance margin level. In cross margin, the system automatically determines the trader's leverage according to the amount of contracts submitted.

<Cross Margin Example>

Assuming David has 50BTC in his wallet, the leverage automatically changes to 10x when he buys contracts worth 5BTC and 5x when he buys contracts worth 10BTC with cross margin.

Cross Margin Liquidation Price Equation

Cross Margin Liquidation Price (Long)

$$ \small\textsf{Cross Margin Liquidation Price (Long)}$$

$$ \small = {{\textsf{Avg. Entry Price} \times \textsf{Quantity}} \over {\textsf{Quantity(1 - Maintenance Margin Rate} - {\textsf{Avg. Entry Price} \times \textsf{Taker Fee Rate} \over \textsf{*Bankruptcy Price}}) + {\textsf{Available Balance}\times\textsf{Avg. Entry Price}}}} $$ 

\begin{align}\scriptsize\textsf{*Cross Margin Bankruptcy Price (Long)} = {\textsf{1.00075}\times\textsf{Quantity}\over{{\textsf{Quantity}\over\textsf{Avg. Entry Price}}+ \textsf{Available Balance}}}\qquad \scriptsize\textsf{**Available Balance}=\textsf{Wallet Balance}-\textsf{Other Position Margin}-\textsf{Order Margin}\end{align} 

Cross Margin Liquidation Price (Short)

$$ \textsf{Cross Margin Liquidation Price (Short)}$$

$$ \small = {{\textsf{Avg. Entry Price} \times \textsf{Quantity}} \over {\textsf{Quantity(1 + Maintenance Margin Rate} + {\textsf{Avg. Entry Price} \times \textsf{Taker Fee Rate} \over \textsf{Bankruptcy Price}}) - {\textsf{Available Balance}\times\textsf{Avg. Entry Price}}}} $$

\begin{align}\scriptsize\textsf{*Cross Margin Bankruptcy Price (Short)} = {\textsf{0.99925}\times\textsf{Quantity}\over{{\textsf{Quantity}\over\textsf{Avg. Entry Price}}- \textsf{Available Balance}}}\qquad \scriptsize\textsf{**Available Balance}=\textsf{Wallet Balance}-\textsf{Other Position Margin}-\textsf{Order Margin}\end{align}