Maintenance margin refers to the minimum margin amount that investors must maintain in their positions or accounts in order to continue holding the positions. When unrealized losses cause the position or account margin to fall below the required maintenance margin level, a forced liquidation will be triggered. Maintenance margin is crucial for sustaining trading positions.
Because investors hold a larger contract value (position value + order value), the required maintenance margin will increase by a fixed percentage as the contract value rises to certain levels. Each trading pair has its own base maintenance margin rate, which is adjusted according to changes in the risk limit tier.
The maintenance margin rate (MMR) for each position is determined using a tiered calculation method based on the margin level of the position value. Any excess amount beyond a specific tier will be calculated according to the MMR of the new tier.
Calculation formula: Position Value = Contract Quantity x Average Entry Price
Maintenance Margin (MM) = (Position Value x MMR) - Maintenance Margin Deduction
Note:
The MM deduction for the nth tier = Risk limit of the (n-1)th tier x (Difference between MMR of the nth tier and MMR of the (n-1)th tier) + MM deduction of the (n-1)th tier
The required MMR and maintenance margin deduction amounts for each risk limit tier can be viewed in the parameter table.
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