All BiKi Perpetual Contracts require a certain amount of margin and the different ratios of the margin can help to reduce the liquidation risks of the contract positions.
This is the minimum margin required when opening a contract position, i.e. the estimated cost displayed when placing the order.
Initial Margin = (Order Value / Leverage Multiple) + estimated trading fees when opening the position
When the order is fully completed, the balances after deducting the trading fees will automatically be returned to the available balances.
This is the minimum margin required to keep the contract positions open i.e. the minimum balance you need to hold to keep your positions,
Maintenance Margin = Order Value / Leverage Multiple
After successfully opening the position, under 【Position】 in the order summary page, you can check the margin required to maintain your contract position. You may click 【+】 and adjust to increase/decrease your margin.
Da Bing encountered a problem which puzzled him when placing an contract order for BTCUSDT.
When BTCUSDT was at the price of 10000 USDT, he used 100x leverage to buy 1000 units and the estimated cost was 11.5 USDT. With the BTC price remained unchanged after he bought the contracts, Da Bing noticed that the margin was shown as 10.8 USDT.
So, what was the difference between the 2 values?
Answer: 11.5 USDT was his initial margin required when opening the position and 10.8 USDT was his maintenance margin to keep his positions open.
1. When there is sufficient funds, a higher margin ratio will lower the liquidation risk for the contract position.
2. The bottom of the pop-up window for adjusting the margin will display the real-time liquidation price for your order after you adjusted the margin so please do take note.
BiKi recommends that users should spend time to learn and understand the basic logic and principles of contracts. An objective understanding of the investment product will help you become a professional investor, which is an important starting point for your professionalism and risk tolerance.
Editor: BiKi Trading Academy
Update: Contract Trading Open Class Team