Dear BVOX users,
The following text is about Margin
1. Margin
What is Margin?
The leverage principle of futures transactions is concentrated on the margin system of futures transactions, that is, you do not need to pay 100% of the funds when you conduct futures transactions. You only need to invest a small amount of funds at a certain ratio according to the futures value as the collateral for the performance of the futures to participate. For futures purchases and sales, this fund is called margin.
a) Leverage greatly improves the utilization of funds, and high returns are accompanied by high risks.
b) The higher the leverage used by the trader, the lower the required margin.
For example:
Zhang currently holds 1 cont EOS/USDT long position, the leverage is 2X, and the current position margin is 0.15314844 USDT. If the leverage is increased, the margin will be reduced accordingly; if the leverage is reduced, the margin will be increased accordingly.
2. Margin for Opening Positions
The margin is the minimum margin required when opening a position, that is, the commission cost displayed when the order is placed.
Margin for Opening Positions = (position value/leverage multiple) + estimated opening fee when opening a position
When all orders are completed, if there is still remaining after deducting the actual opening fees, it will be automatically returned to the available assets.
3. Position Margin
After the position is established, you can view the current position margin in the Position on the futures trading interface.
Initial position margin = position value/leverage multiple
After the position is established, you can adjust the position margin through the "+-" button; you can also adjust the position margin by controlling the leverage.
BVOX Team
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