Initial Margin is the margin needed for a trader to open a position. Traders can calculate the initial margin by multiplying the initial margin rate by the position value. The default initial margin rate is 1% and changes depending on the leverage and risk limit used. Traders can see their maximum leverage available through the table below.

<Initial Margin Example>

When David uses 50x leverage to open a position worth 50BTC, he only needs to use 1BTC, which the 1 BTC used is the initial margin.

**Initial Margin for Closing Orders**

At times, the required Initial Margin may not exist. The details are as follows.

When a trader holds any Long and Short position or active order, if an order in the opposite direction is submitted, there is no required initial margin unless there are access order quantities or margin compared to the existing position and order. This is because the order that is being submitted is considered as a closing order.

Furthermore, when submitting an order in the opposite direction to the current position, if the order quantity is smaller than the position size, there is no required initial margin.

$$ \small \textsf{Buy(Long) Position Required Initial Margin} = {\textsf{Contract Quantity}\over{\textsf{MIN(Buy Limit Order Price, Market Price)}\times\textsf{Leverage}}} $$

Order will reserve a two-way (fee to open + fee to close) taker fee of 0.075%. Actual trading fees will be calculated based on the nature of the order and the execution price.

$$ \small \textsf{Sell (Short) Position Required Initial Margin} = {\textsf{Contract Quantity}\over{\textsf{Order Price}\times\textsf{Leverage}}} $$

Order will reserve a two-way (fee to open + fee to close) taker fee of 0.075%. Actual trading fees will be calculated based on the nature of the order and the execution price.

When an Active Order exists, the system will take the max[Buy(Long) Initial Margin, Sell(Short) Initial Margin] as the active order initial margin.

<Initial Margin for Closing Order Example>

The current Active Order Initial Margin constitute of Buy(Long) Initial Margin = 10 BTC, Sell(Short) Initial Margin = 15 BTC. Then the current Initial Margin for Active Orders is 15 BTC.

If an additional 7 BTC was used for Buy(Long) Active Orders, then the total required initial margin is max(10+7, 15) = 17. Therefore, an additional 2 BTC is required to submit the 7 BTC worth order.

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