Margin Overview
Cross Margin
Initial and Maintenance Margin for Perpetual and Futures Contracts
Initial Margin (IM)
Open Long order IM requirement: [Contract size*Min (Long limit order price, best ask price)]/Leverage. Order will reserve a two-way (fee to open + fee to close) taker fee of 0.055%. Actual trading fees will be calculated based on the nature of the order and the execution price.
Open Short order IM requirement: [Contract size*Max (Short limit order, best bid price)]/Leverage. Order will reserve a two-way (fee to open + fee to close) taker fee of 0.055%. Actual trading fees will be calculated based on the nature of the order and the execution price.
A close position order does not require any Initial Margin.
If a trader has a concurrent Buy and Sell position/order, the system will take Max [Buy order IM (X), Sell order IM (Y)] as the account IM. Assuming X=200, Y=150, then the account IM will be 200. If the trader places another sell order with order cost less than 50, no extra margin is required. However, if the additional sell order cost is 70, causing Y=220, then it will require additional 20 (220-200) margin to place the additional sell order.
Maintenance Margin (MM)
Maintenance Margin (MM) is calculated using the maintenance margin rate (MMR) of the position. The MMR of each position increases as the margin tier increases.
For all positions, the required maintenance margin is MMR * Contract value at the open position price. The taker fee for closing the position will also be included in the maintenance margin requirement. This is the minimum margin required to continue holding a position. If the margin available in the position is less than the maintenance margin, the position will be liquidated.
Tiered Margin
Formula
New Maintenance Margin (MM)% = MM% Base value + (No. of tier increments * MM% incremental value) New Initial Margin (IM)% = IM% Base value + (No. of tier increments * IM% incremental value) New Maintenance Margin Amount = New MM% * Total position value
For more information on risk limit, please click here.
Margin for Options
When purchasing options, the most you can lose is the option premium plus fees. Therefore, for long option positions, the Initial Margin consists of the option premium and fees. However, for short option positions, the Initial Margin is affected by factors like the option premium and the extent to which the option is "out-of-the-money," meaning how much the option's strike price differs from the current market price of the underlying asset.
As such, only short option positions are subject to a maintenance margin, while long option positions have a maintenance margin of 0.
For specific margin details, please click here.
Isolated Margin
Initial and Maintenance Margin for Perpetual and Futures Contracts
Initial Margin (IM)
Open Long order IM requirement: [Contract size*Min (Long limit order price, best ask price)]/Leverage. Order will reserve a two-way (fee to open + fee to close) taker fee of 0.055%. Actual trading fees will be calculated based on the nature of the order and the execution price.
Open Short order IM requirement: [Contract size*Max (Short limit order, best bid price)]/Leverage. Order will reserve a two-way (fee to open + fee to close) taker fee of 0.055%. Actual trading fees will be calculated based on the nature of the order and the execution price.
A close position order does not require any Initial Margin.
If a trader has a concurrent Buy and Sell position/order, the system will take Max [Buy order IM (X), Sell order IM (Y)] as the account IM. Assuming X=200, Y=150, then the account IM will be 200. If the trader places another sell order with order cost less than 50, no extra margin is required. However, if the additional sell order cost is 70, causing Y=220, then it will require additional 20 (220-200) margin to place the additional sell order.
Maintenance Margin (MM)
Maintenance Margin (MM) is calculated using the maintenance margin rate (MMR) of the position. The MMR of each position increases as the margin tier increases.
For all positions, the required maintenance margin is MMR * Contract value at the open position price. The taker fee for closing the position will also be included in the maintenance margin requirement. This is the minimum margin required to continue holding a position. If the margin available in the position is less than the maintenance margin, the position will be liquidated.
Tiered Margin
Formula
New Maintenance Margin (MM)% = MM% Base value + (No. of tier increments * MM% incremental value) New Initial Margin (IM)% = IM% Base value + (No. of tier increments * IM% incremental value) New Maintenance Margin Amount = New MM% * Total position value
For more information on risk limit, please click here.
To learn more about margin requirements in the Unified Trading Account, please click here.
Portfolio Margin
Portfolio Margin is a risk-based margin policy that calculates the overall risk of an investment portfolio through stress tests (using the mark price and implied volatility of the underlying asset). Under the stress testing criteria, if there are risk hedging relationships in the derivative investment portfolio, a portion of the margin can be offset against each other, and the specific offset amount depends on the stress test results.
For more details on Portfolio Margin requirements for each contract, please click here.
To learn more about Portfolio Margin, please click here.