Margin details: All contracts in Venkate perpetual contracts require a certain margin, allowing higher leverage.
Key points in margin trading include:
- Initial Margin: The minimum margin required to open a position, also indicating the leverage ratio (position value/margin).
- Maintenance Margin: The minimum margin required to maintain a position, triggering liquidation if below this level.
- Opening Cost: Total frozen assets for opening a position, including initial margin and potential fees.
- Effective Leverage: Current position leverage including unrealized P&L.
Margin Calculation:
Initial margin is the minimum collateral needed for opening a position. Higher leverage requires less initial margin.
- Position Margin = Initial Margin + Additional/Reduced Margin
Forward Contracts (USDT-Margined Contracts):
- Initial Margin = (Entry Price × Position Size × Contract Value) / Leverage
Example (Forward Contract): A trader using 25x leverage submits a limit order of 10,000 BTCUSDT at a price of 7,000, with a contract value of 0.0001 BTC per contract. The margin is:
- Initial Margin = (7,000 × 10,000 × 0.0001) / 25 = 280 USDT
Reverse Contracts (Coin-Margined Contracts):
- Commission Cost = (Position Size × Contract Value) / (Leverage × Entry Price)
Example (Reverse Contract): A trader using 25x leverage submits a limit order of 10,000 BTCUSD at a price of 7,000, with a contract value of 1 USD per contract. The margin is:
- Initial Margin = (10,000 × 1) / (7,000 × 25) = 0.0571 BTC
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