Maintenance margin refers to the amount of funds needed in your trading account to keep a derivatives position open. If there are not enough funds in your trading account to match the maintenance margin, your open positions will be liquidated.
The formula for maintenance margin is:
maintenance margin = (minimal maintenance margin percentage + position margin multiplier * maximum absolute position) * absolute position value
- The minimal maintenance margin percentage is a fixed percentage that the trader must pay to keep a derivatives position open.
- The position margin multiplier increases the maintenance margin requirements in proportion with larger position sizes.
- The maximum absolute position is the largest position that a trader can obtain if their open orders are filled.
- The absolute position value is the sum of all positions, where buys are positive (e.g., buying 1,000 contracts increases the position value by 1,000) and sells are negative (e.g., selling 1,000 contracts decreases the position value by 1,000).
If you want to go long or short on BTC-PERP, the maintenance margin will be calculated as a fixed percentage plus the margin required that is related to the size of your position. As you increase the size of your position, the position margin multiplier increases the required maintenance margin.
Suppose a trader is long with 100,000 BTC-PERP contracts and the mark price is 10,000. The absolute value of that position is 10 BTC and given the position margin multiplier is 1e-8, the position will require an extra 0.1% of margin (since [100,000*0.00000001] is 0.001 = 0.1%) on top of the minimal maintenance margin percentage.
The maintenance margin is calculated using the absolute position value (10 BTC) multiplied by the sum of the minimal maintenance margin percentage (0.5% for BTC-PERP) and the extra margin that depends on the position size of your trade:
(0.5% + 0.1%)(10 BTC) = (0.006*10) = 0.06 BTC.
If your BTC-denominated account value falls below 0.06 BTC, your open positions will be liquidated.
Consider the same example, but the number of contracts is increased to 200,000. The maintenance margin will then increase to:
(0.5% + 0.2%)(20 BTC) = (0.007*20) = 0.14 BTC.
A doubling of the position size increases the maintenance margin by more than double.
You can view the initial margin and maintenance margin by clicking the Deposit button and navigating to the Balances page:
Maintenance Margin for Instruments on Interdax
The Minimal Maintenance Margin Percentage and Position Margin Multiplier for derivatives on Interdax are shown below.
|Instrument||Minimal Maintenance Margin Percentage||Position Margin Multiplier|