Margin
In the virtual contract market, a trader can participate in the purchase and sale of a contract by paying a small amount of money as financial security for the fulfillment of the contract based on a certain percentage of the contract price. This money is the virtual contract margin. MEME offers traders to trade contracts up to 100X, and the maximum loss of a position in position-by-position mode is only the margin of the position under this leverage.
Margin trading means that the amount of money taken in each transaction is only a percentage of the underlying transaction amount. In recent years, margin trading has become increasingly popular because of its high flexibility and low entry criteria. Not only does this type of trading offer leverage, it also allows traders to buy or sell long or short in both directions, often in the futures market, meeting the diverse needs of traders. Margin trading attracts many investors and arbitrageurs, providing liquidity to the platform and deepening market depth.
Leverage is a common financial trading system, known as the margin system. The margin trading system is leveraged in that the investor does not need to pay the full amount of the contract value, but only a percentage of the margin in order to trade. Both the buyer and the seller are required to pay the margin according to the rules of their exchange, which is a financial guarantee for the trader to fulfill the contract. But on the other hand, the "leverage" allows the investor to trade with a larger amount of money, but at the same time, the investor gains and takes more risk.
Commissioned margin is also known as starting margin, which is the amount of margin a trader is required to pay when opening a position in leveraged trading. The starting margin is equal to the value of the order multiplied by the starting margin percentage, which is determined by the amount of leverage used.
The starting margin is calculated by dividing the value of the contract by the leverage. Assuming that 100 times leverage is used when trading a contract worth 10,000 USD, a trader would only need to invest 100 USD as starting margin (10,000/100). Traders can view the maximum leverage allowed for a position in the Risk Limits table.
Maintenance margin is the minimum amount of margin required for a trader to retain a position without being forced to liquidate it. In MEME, the base maintenance margin for perpetual contracts is 0.5%, i.e. the base maintenance margin required to hold a BTC position is 0.5% of the value of the position, and when the account equity is less than or equal to the maintenance margin, the position will be forced to close.
Last modified 9mo ago