Margin Rule
In derivatives trading, Initial Margin and Maintenance Margin define the minimum capital requirements:
Initial Margin: The minimum amount required to open a position.
Maintenance Margin: The minimum balance required to keep the position open.
Since traders adopt different strategies, YUBIT supports two margin modes: Cross Margin and Isolated Margin.
1. Cross Margin
All positions in the same margin account share the available balance.
If a position requires more margin to avoid liquidation, additional funds are automatically drawn from the account balance.
Example: A trader opens a 100 BTC/USDT long with 517.04 USDT margin.
If the market falls and required margin rises to 600 USDT, the extra 82.96 USDT will be automatically used from the account balance.
This helps avoid liquidation.
2. Isolated Margin
Margin is limited to the amount allocated to a single position.
If margin falls below the maintenance level, the position will be liquidated.
Traders can manually adjust (add/remove) margin for the position.
Example: A trader opens a 100 BTC/USDT long with 517.04 USDT margin.
In Isolated Mode, if margin requirements exceed this amount, the position is liquidated to prevent further loss.
3. Margin Accounts
Each collateral asset is managed separately. For example:
BTC Margin Account
USDT Margin Account
Profits and losses in one margin account do not affect others.
4. Details of Margin Modes
4.1 Cross Margin (Default)
Also known as “shared margin.”
Uses the entire account balance to prevent liquidation.
Profitable positions can offset losing ones.
Useful for hedgers and arbitrage traders.
Default mode for all contracts.
4.2 Isolated Margin
Maximum loss is limited to the allocated initial margin.
Additional account funds are not used for that position.
Useful for speculative trades where risk must be capped.
High leverage = higher liquidation risk.
Example: A 50x leveraged position is liquidated if price moves 2% against you.
4.3 Adjusting Isolated Margin
By default, Cross Margin is enabled.
You can switch to Isolated Margin in the Leverage Slider on the trading panel.
The chosen leverage setting is saved per contract.
The liquidation price updates in real time as leverage is adjusted.
4.4 Isolated Margin & Mark Price
During extreme volatility, market prices may deviate from the mark price.
If you enter at a price far from the mark price, you may see unrealized losses immediately.
This doesn’t necessarily mean real losses but raises the risk of quick liquidation.
To avoid this, use moderate leverage during volatile conditions.
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