1、Automatic Margin Call is a function that allows traders to automatically add margin to positions they have already held to avoid forced liquidation. Once the Automatic Margin Call is enabled, the available balance of your futures account will be automatically transferred to your position whenever your position is about to trigger a forced liquidation.
The amount added by the Automatic Margin Call is the current position margin.
When the margin is added, you can see that the liquidation price is further away from the marked price.
The Automatic Margin Call function is disabled by default.
To enable/disable the this function, users can turn on or off the "Automatic margin call" mode in the "order" area.
Web side:
APP Mobile side:
2. The relevant formula of the Automatic Margin Call is as follows:
The amount of each automatic call will be the original margin of the position when the account balance is sufficient:
Position Margin = Initial Margin + Added/Reduced Margin
● The amount of each automatic call may be fully added into the position margin or may fail according to the account amount when the account balance is insufficient.
● After the addition, the new liquidation price calculation formula is:
Liquidation Price for Long Position= ( Number of Positions* Futures Multiplier * Average Opening Price - Initial Margin + Handling Fee - Margin Call) / ( (1 - Maintenance Margin Rate) * Futures Multiplier * Number of Positions)
Liquidation Price for Short Position = ( Number of Positions* Futures Multiplier * Average Opening Price + Initial Margin - Handling Fee + Margin Call) / ( (1 + Maintenance Margin Rate) * Futures Multiplier * Number of Positions)
3. Matters need attention:
(1)Once the Automatic Margin Call function is enabled, the available balance of your futures account will be automatically transferred to your position whenever your position is about to trigger a forced liquidation.Assets in other accounts (coins, fiat money, wealth management) are not affected.
(2) If you have turned on the Automatic Margin Call function and set a stop loss at the same time , your position may be closed with a stop loss after the margin call. Therefore, please operate with caution to avoid unnecessary losses!
(3) When enabling the automatic margin call function as well as encountering with extreme problems such as large market fluctuations, trading delays or network delays, the margin call may fail at a very low probability. So you need to re-enable this function.
Risk Warning:
Digital assets are innovative investment products with high price fluctuations, please judge your risk tolerance rationally and make your investment decisions prudently.
Doex Team
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