What is margin?

Dear WEEXers,

The margin used as collateral for trades in your account is frozen when opening a position and cannot be used for other trades.

When you trade, use the margin as a deposit, and use the leveraged trading mode to enlarge the order transactions you can make.

Your position value = margin x leverage

In other words, the higher the leverage a trader uses, the lower the margin required.

If you are trading with leverage, using Bitcoin as an example, and assuming the market price is around 7,000 USDT, you only need to pay approximately 200 USDT as margin on our platform (excluding fees). With this, you can speculate on both upward or downward price movements and potentially profit in either direction. If you incur a loss, it will be deducted from the margin. If the estimated liquidation price is reached, your position will be forcibly closed, commonly referred to as a liquidation.

You can think of the margin as a deposit for a transaction. When you close the trade, we will return the margin after deducting your profit and loss handling fee. If you use less margin, the leverage ratio is relatively huge. And [it is easy to reach the stop profit or stop loss point due to market fluctuations], so the risk will be greater; on the contrary, if you use more margin, the operation needs. The leverage ratio is relatively small, and [can bear a larger take-profit and stop-loss interval] so that the relative risk will be relatively small. If you have considerations in trading, you can also choose the isolated position mode.

Margin = (cont x futures face value x open price) ÷ leverage
Suppose you trade 100 Dogecoins, the open price is 0.1779, and you choose leverage 20 x
The calculated margin is as follows:
Margin=(100 x 1 x 0.1779) ÷ 20=0.8895
You can go to the three dots at the top right of the futures page and click [Calculator] to calculate the most accurate number.

 

For a more detailed margin information, please go to WEEX Futures: Margin.

Thank you for your support of WEEX!

 

WEEX Team

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