Maintenance Margin Instructions

Maintenance Margin in Perpetual Contracts

The maintenance margin is a crucial risk management indicator in perpetual contract trading. It defines the minimum margin level required to maintain a position and prevent forced liquidation due to excessive losses.

Calculation Method

• Maintenance Margin:

Maintenance Margin=Position Value×Maintenance Margin Rate

• Position Value: The total value of the current position, calculated as the position size multiplied by the opening price.

• Maintenance Margin Rate: A percentage that represents the minimum margin ratio required to maintain the position.

Risk Management

• Monitor Account Balance: Regularly check your account balance and position status to ensure that you always meet the maintenance margin requirements. Insufficient account balance may trigger forced liquidation.

• Adjust Position Size: During periods of high market volatility, consider reducing your position size or increasing your margin to lower the risk of falling below the maintenance margin.

• Use Stop-Loss Orders: Setting stop-loss orders can help limit losses and prevent your account from falling below the required margin due to sudden market fluctuations.