1. What is Margin?
In the contract market, traders only need to use a small numbefunds at a certain rate according to the contract price as a financial guarantee for the orders to perform, and they can participate in the trading of the contract. This fund for contract usage is called margin.
In he process of margin trading, it is necessary to pay attention to:
- Initial margin: The inimum margin required to open a position, and the initial margin rate (open position value/position margin) which also represents your leverage rate
- Maintenance Margin: A minimm margin required to maintain a position below bankrupt price otherwise, your position will be forced to liquidation
- Cost of position: The tota frozen assets required to open a position including the initial margin for opening a position and possible trading fees.
- Actual leverage: The current position's leverage ratio of unrealized profit and loss.
- - Base R