Contracts margin is a good-faith deposit, or an amount of capital one needs to post or deposit to control a futures contract.
Cross-margin mode is available in Huobi Perpetual Swaps
The position margin required varies with the price movements.
Calculation of Margin
Position margin = (contract face value * quantities of contracts) / latest price / leverage ratio.
E.g.1 : If the user opens long 10 lots of BTC contracts (with contract face value of 100 USD/lot), the latest price is 5000 USD/BTC and leverage ratio is 10x, then,
Position Margin = (100*10)/5000/10=0.02BTC.
E.g.2 : If the user opens long 10 lots of EOS contracts (with contract face value of 10 USD/lot), the latest price is 5 USD/EOS and leverage ratio is 10x, then,
Position Margin =(10*10)/5/10=2 EOS.
Differentiate Margin System
In order to maintain the stability of the contract market and reduce the risk of large positions, Huobi Futures uses a differential margin system. When the user chooses 20x or more than 20x leverage, and the user's account equity exceeds a certain range, the available margin will change. Choosing 10x and lower leverage will not be influenced by differential margin system. Details are showed as follow:
【The above data and indicator contents may be adjusted in real time according to market conditions, and the adjustments will be made without further notice.】
For example, if the user's account equity is 120BTC, choosing 20x leverage, the available margin shall be 60 BTC. Therefore，the maximum amount of BTC that the user can use to open positions is 60.
Note: For maximum scale of Differentiate Margin System,
Δ(Available Margin) / Δ(Equity) = 1 / Corresponding leverage
Margin rate is an indicator used to assess assets risk；
Margin Rate = (Account Equity / Used Margin) * 100% - Margin call coefficient；
The lower of margin rate, the higher risk of the account will be. When the margin rate is ≤0%, liquidation will be triggered.
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