Introduction
Single-currency margin trading enables users to execute trades across multiple trading types—spot, margin, futures, perpetual contracts, and options—using a unified cross-margin account. By depositing assets into a cross-margin account, users can share margin funds across all products settled in the same currency, allowing profits and losses to offset each other.
Key Features
- Unified Margin Pool: All trading products share a single margin balance.
- Risk Consolidation: Positions settled in the same currency are evaluated collectively.
- Flexible Risk Management: Users can opt for isolated margin mode to segregate position risks.
Assets in Single-Currency Margin
Assets are displayed as follows:
| Term | Explanation |
|---|---|
| Equity | Total equity of a currency, including cross-margin and isolated positions. Formula: Balance + Unrealized P&L + Option Value. |
| Available Equity | Assets available for cross-margin trading (e.g., futures, perpetuals). Formula: Max(0, Cross-balance + Unrealized P&L - Locked Amounts). |
| Available Balance | Funds usable for isolated positions, spot trades, or option purchases. |
| Locked | Assets reserved for open orders or isolated positions. |
| Unrealized P&L | Aggregate unrealized P&L across all positions sharing the settlement currency. |
Trading Rules
Cross Margin Mode
Cross-Margin Trading:
- Positions share margin and offset P&L.
- Requires sufficient available equity for margin trades (e.g., futures, perpetuals).
- Available balance must cover spot/option purchases.
Isolated Margin Mode:
- Risks and P&L are segregated per position.
Example Scenarios
Margin Buy Order:
- User holds 700 BTC equity.
- Opening a 200 BTC long position (5x leverage) requires 40 BTC margin.
- Verification: Available Equity (185 BTC) > Required Margin (40 BTC) → Order succeeds.
Futures Order:
- Same 700 BTC equity.
- 100,000 weekly contracts (5x leverage) require 200 BTC margin.
- Available Equity (185 BTC) < Required Margin (200 BTC) → Order fails.
Risk Metrics
Margin Ratio
Formula:
(Balance + Unrealized P&L - Locked Assets) / (Maintenance Margin + Liquidation Fees)
Liquidation Rules
- Triggered at 93% margin ratio.
- System cancels pending orders first; if ratio remains ≤95%, positions are liquidated.
- Priority: Non-hedging positions (e.g., futures) liquidated before options.
FAQs
1. What happens if my equity falls below maintenance margin?
The system cancels pending orders. If the margin ratio stays ≤95%, positions are liquidated.
2. Can I hedge risks in single-currency mode?
Yes, but liquidation prioritizes non-hedging positions.
3. How is available equity calculated?
It excludes locked amounts and includes unrealized P&L.
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Conclusion
Single-currency margin trading simplifies multi-product strategies by consolidating margins. Users must monitor equity levels and leverage ratios to avoid liquidation. For risk isolation, switch to isolated margin mode.