Spot and Futures Cross Margin Mode Explained

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1. Trading Rules for Spot and Futures Cross Margin Mode

When trading in spot and futures cross margin mode, margin positions display key metrics:

TermExplanation
AssetsPositive assets in the position (excluding margin).
Available AssetPositive assets available to close a position (see details below).
LiabilityInitial liabilities + accrued interest.
InterestGenerated interest not yet deducted.
Avg. Open PriceWeighted average of original and new holdings.
Est. Liquidation PriceIndicative price when liquidation conditions are met (exceptions apply).
P&LUnrealized profit/loss, calculated differently for long/short positions.
P&L RatioP&L divided by initial margin.
Initial MarginCalculated based on position type and margin currency.
Maintenance MarginMinimum required margin to prevent liquidation.

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2. Initial Margin Principles

Key principles of initial margin in cross margin mode:

3. Position Closing Mechanisms

3.1 Matching Position and Margin Currencies

Closing Principles:

  1. Only available assets can close positions
  2. Formulas differ based on equity vs. margin requirements
ScenarioAvailable Asset Calculation
Long Positions(Liability + interest) × (1 + IMR/MMR%) ÷ mark price
Short Positions(Liability + interest) × (1 + IMR/MMR%) × mark price

Closing Methods:

MethodRules
Market Close AllPays liabilities, transfers remaining assets to account
Limit CloseAllows partial closing with remaining liability
Reduce + ReverseCloses position, uses excess to open opposite position

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3.2 Mismatched Position and Margin Currencies

Key Differences:

  1. Only position assets can close positions
  2. Entire position must be sold to close
  3. Account equity covers unpaid liabilities

FAQ Section

Q: How is liquidation price calculated in cross margin mode?
A: It's estimated based on position metrics, but cannot be calculated with options or mixed underlying positions.

Q: Can I change margin currency after opening a position?
A: No, margin currency is fixed when opening the position.

Q: What happens if I partially close a position?
A: Remaining liability stays until fully paid from account equity.

Q: How is interest calculated on positions?
A: Interest accrues continuously until deducted from position value.

Q: What's the main advantage of cross margin vs isolated?
A: Cross margin allows shared equity across positions, providing more flexibility.

Q: Can I use cross margin for all trading pairs?
A: Availability depends on the exchange's supported margin pairs.

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