Introduction to Futures Margin
In cryptocurrency futures markets, traders only need to deposit a fraction of the total contract value as collateral - known as margin - to participate in leveraged trading. This margin serves as financial担保 (guarantee) for open positions and fluctuates with market price movements.
Margin Account Types
Isolated Margin Accounts
Each trading pair operates in a separate account with independent:
- Profit/loss calculations
- Margin requirements
- Risk parameters
Example Scenario:
A trader holds BTC and ETH positions in isolated accounts. If their BTC position gets liquidated due to margin call, the ETH position remains unaffected.
Cross Margin Accounts
All positions share pooled collateral from one account:
- Combined equity calculation across perpetual and delivery contracts
- Unified margin ratio monitoring
- Cross-position risk exposure
Example Scenario:
A trader's BTC perpetual, ETH perpetual, and BTC weekly contracts share collateral. If margin ratio exceeds 100%, all positions face potential liquidation.
👉 Master advanced margin strategies
Margin Calculation Formulas
| Calculation Type | Formula | Example |
|---|---|---|
| Position Margin | Contract Value / Leverage | 500 USDT position at 10x = 50 USDT margin |
| Locked Margin Savings | Long Margin + Short Margin - min(Long,Short)*100% | 500 long + 250 short - 250 = 500 USDT |
Key Considerations:
- USDT perpetual contracts support both margin modes
- USDT delivery contracts only support cross margin
- Margin requirements update in real-time with price changes
Tiered Margin System
To mitigate large position risks, exchanges implement tiered margin requirements:
| Equity Range (USDT) | 20x Leverage | 75x Leverage | 100x Leverage |
|---|---|---|---|
| <3,000 | 100% | 100% | 100% |
| 3,000-23,000 | 100% | 50% | 50% |
| >23,000 | 100% | 20% | 20% |
Practical Implications:
- Higher leverage reduces available margin at certain equity thresholds
- Cross/isolated accounts follow identical tiered rules
- Each contract cycle calculates requirements independently
Transferable Balance Formula
Transferable Amount = max(0, Initial Equity + Deposits - Withdrawals - max(0,Bonus) + min(Unrealized PnL,0) + min(0,Realized PnL) - max[0,Margin - max(0,Realized PnL)]) + max(0,[Realized PnL - Margin])*Settlement CoefficientSettlement Types:
- Periodic settlements: 0% transferable
- Real-time settlements: 100% transferable
FAQ Section
Q: What happens if my margin ratio reaches 100%?
A: Positions enter liquidation when the margin ratio exceeds 100%. Cross margin liquidates all positions, while isolated margin only affects the specific account.
Q: How does locked margin optimization work?
A: When holding opposing long/short positions, the exchange only requires margin for the net exposure, potentially reducing requirements by up to 50%.
Q: Why does my available margin decrease at higher equity levels?
A: Tiered margin systems automatically restrict available collateral to prevent excessive risk-taking with large accounts.
Q: Can I switch between margin modes?
A: Yes for perpetual contracts, but delivery contracts permanently use cross margin. Mode changes may require closing existing positions.
👉 Optimize your margin efficiency today
Advanced Margin Management
Position Sizing Strategies
- Risk-Adjusted Allocation: Never risk >2% of equity per position
- Volatility Scaling: Higher volatility assets require lower leverage
- Multi-Contract Hedging: Utilize locked margin savings when appropriate
Liquidation Prevention Tactics
- Maintain minimum 150% margin ratio
- Set stop-loss orders at 50% of liquidation price
- Monitor funding rates in perpetual contracts
- Avoid over-leveraging during high volatility
Remember: Margin trading amplifies both profits and losses. Always practice responsible risk management and understand your exchange's specific margin policies before trading.