📏Margining

Opening a contract position requires a certain amount of margin, and margin trading provides greater leverage for your contracts.

  • Initial Margin: The minimum amount of margin required for opening a position. Initial margin rate = 1/leverage.

  • Maintenance Margin Ratio: The minimum required margin ratio to maintain a position. Falling below this ratio triggers liquidation events or partial liquidation events.

Different position values and leverage ratios have different maintenance margin ratios, with specific parameters as follows:

Leverage RatioMaximum Position Value (USDT)Maintenance Margin Ratio

100x~125x

100,000

0.4%

50x~100x

500,000

0.5%

20x~50x

2,000,000

1%

10x~20x

10,000,000

2.5%

5x~10x

40,000,000

5%

4x~5x

100,000,000

10%

3x~4x

200,000,000

12.5%

2x~3x

400,000,000

15%

0x~2x

99,999,999,999

25%

LN Exchange supports both cross-margin and isolated-margin modes:

  • Cross-margin mode: All positions share the margin in the contract account to prevent liquidation. In a liquidation event, traders may lose all margins and positions.

  • Isolated margin mode: A specific amount of margin is allocated to each position. If the position's margin falls below the maintenance margin level, the position will be liquidated. In isolated margin mode, you can add or reduce the margin for a position.

Last updated