Dear valued users:

After the successful launch of locked margin optimization function for futures trading, Huobi Futures will support this function for coin-margined swaps trading at 16:00 on Oct. 15, 2020 (GMT+8). With this function, users could reduce position margin and improve fund utilization.

When a user holds both long and short positions, the optimization ratio for locked margin is 100%. The formulas to calculate locked margin are as below:

- Long position margin for a single asset = long position quantity (cont) of a single asset* contract face value / contract latest price / leverages
- Short position margin for a single asset= short position quantity (cont) of a single asset * contract face value / contract latest price / leverages
- Locked margin for a single asset = min (Long position margin for a single asset, Short position margin for a single asset)
- New position margin for a single asset = Long position margin for a single asset + Short position margin for a single asset - Optimization ratio for this asset * Locked margin for a single asset

Example: Tom holds a long position of 1000 conts BTC/USD Swaps and a short position of 800 conts of BTC/USD Swaps both in 20x leverage. The face value of each contract is 100 USD. Assume the latest price of BTC/SUD Swaps is 9500 USD, the new position margin of Tom is calculated as following:

Long/Short position margin for BTC swaps =100 * 1000 / 9500 / 20 + 100 * 800 / 9500 / 20=0.9473 BTC

Locked margin for BTC swaps = min (100 * 1000 / 9500 / 20, 100 * 800 / 9500 / 20) = 0.4210 BTC

New position margin for BTC swaps=0.9473 - 0.4210 *100% = 0.5263 BTC

**Compared with the original margin of 0.9473 BTC, the new position margin reduces 0.4210 BTC, which greatly improved the fund utilization of users with both long and short positions.**

Thank you for your support to Huobi Futures!

Huobi Futures

Oct. 14, 2020

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