Dear WEEXers,
The following text is about margin.
1. Margin
1) What is margin?
The leverage principle in futures trading revolves around the margin system, meaning you don’t need to pay 100% of the funds when conducting futures transactions. You only need to invest a small amount of funds, based on a certain ratio of the futures value, as collateral to participate in the trade. In futures trading, this fund is known as margin.
a) Leverage significantly increases the efficiency of capital utilization, but high returns come with high risks.
b) The higher the leverage used by the trader, the lower the required margin.
Here is the example:
Zhang currently holds 1 cont EOS/USDT long position with 2x leverage, and the current position margin is 0.15314844 USDT. If the leverage is increased, the margin will be reduced accordingly; if the leverage is reduced, the margin will be increased accordingly.
If you open a position through copy trading on the platform, the margin used for opening the copied position will be shared with the margin used for opening your own positions.
2. Margin for opening positions
The margin is the minimum required when opening a position, representing the commission cost displayed when placing the order.
Margin for opening positions = (position value÷leverage multiple) + estimated opening fee when opening a position
When all orders are completed, if there is still remaining after deducting the actual opening fees, it will be automatically returned to the available assets.
3. Position margin
After the position is established, you can view the current position margin in the "Position" on the futures trading interface.
Initial position margin = position value ÷ leverage multiple
After the position is established, you can adjust the position margin using the '+-' button or by adjusting the leverage.
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WEEX Team
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