Margin Terms

Customer Specialist Team
Updated

1. Equity

Definition: The total equity of a specific asset in the account, including all positions under Cross Margin and Isolated Margin modes.

Calculation: Equity = Transferred-in Amount - Transferred-out Amount + Realized PNL of All Positions + Unrealized PNL of All Positions

 

2. Available Margin

Definition: The remaining assets in your Futures account after deducting frozen margin, which can be used to open positions or add margin.

 

3. Position Amount

Definition: The contract amount of the current position. The amount of the Long position is shown in green and the Short position is shown in red.

 

4. Average Entry Price

Definition: The average cost of opening a position, which can accurately display your actual opening cost. When adding positions in the current market, the position value will be recalculated based on the executed price.

Calculation:

  • Avg. Entry Price (USDⓈ-Margined Contract) = Cumulative Open Value / Position Amount
  • Avg. Entry Price (Coin-Margined Contract) = Position Amount * Contract Value / Cumulative Open Value
     

5. Opening Value

Definition: Opening Value refers to the asset value after a position is opened.

Calculation:

  • Open Value (USDⓈ-Margined Contract) = Position Amount * Opening Price
  • Open Value (Coin-Margined Contract) = Position Amount * Contract Value / Opening Price

 

6. Position Value

Definition: The current position value, estimated at the Mark Price.

Calculation:

  • Position Value (USDⓈ-Margined Contract) = Position Amount * Mark Price

  • Position Value (Coin-Margined Contract) = Position Amount * Contract Value / Mark Price

 

7. Position Margin

Definition: The total margin currently allocated to an open position.

(1) Under Isolated margin mode: The position margin consists of the margin allocated to Isolated positions and unrealized PNL of these positions. When the position margin falls below the maintenance margin, the position will be forcefully liquidated.

(2) Under Cross margin mode: The position margin consists of all margin allocated to Cross positions, unrealized PNL of these positions, and the account available balance. When the position margin falls below the maintenance margin, all cross positions will be forcefully liquidated.

 

8. Initial Margin

Definition: The margin required for opening positions.

Calculation:

(1) Initial Margin = Opening Value * Initial Margin Rate

(2) Initial Margin Rate = 1 / Leverage * 100%

 

9. Maintenance Margin

Definition: The minimum margin required to maintain the current open position.

 

10. Frozen Margin

Definition: The initial margin and trading fees that are frozen when a pending order cannot be filled immediately.

Calculation:

(1) USDⓈ-Margined Contract: 

  • (Frozen) Initial Margin = Position Size * Order Price * Initial Margin Rate
  • (Frozen) Trading Fees = Contract Qty * Order Price * Maker Rate

(2) Coin-Margined Contract: 

  • (Frozen) Initial Margin = Contract Qty * Contract Value / Order Price * Initial Margin Rate
  • (Frozen) Trading Fees = Contract Qty * Contract Value / Order Price * Maker Rate

 

11. Profit & Loss Rate (PNL%)

Definition: The current PNL% of your open contracts, estimated at the Mark Price or the Latest Price.

Calculation: PNL% = Cumulative PNL / Initial Margin

 

12. Unrealized PNL

Definition: The current profit or loss of open contracts, estimated based on the Mark Price or the Latest Price.

Calculation:

(1) USDⓈ-Margined Contract

  • (Long) Unrealized PNL = Position Amount * (Mark Price - Average Entry Price)
  • (Short) Unrealized PNL = Position Amount * (Average Entry Price - Mark Price)

(2) Coin-Margined Contract

  • (Long) Unrealized PNL = Contract Amount * Contract Value * (1 / Average Entry Price - 1 / Mark Price)
  • (Short) Unrealized PNL = Contract Amount * Contract Value * (1 / Mark Price - 1 / Average Entry Price)

 

13. Realized PNL

Definition: The realized profit and loss of a position, including PNL generated from closing positions, trading fees paid, and funding fees.

Calculation:

(1) USDⓈ-Margined Contract

  • (Long) Realized PNL = Closing Amount * (Closing Price - Average Entry Price)
  • (Short) Realized PNL = Closing Amount * (Average Entry Price - Closing Price)

(2) Coin-Margined Contract

  • (Long) Realized PNL = Closing Amount * Contract Value * (1 / Average Entry Price - 1 / Closing Price)
  • (Short) Realized PNL = Closing Amount * Contract Value * (1 / Closing Price - 1 / Average Entry Price)

 

14. Bankruptcy Risk

Definition: Bankruptcy Risk is calculated based on the position margin and the maintenance margin for the current position. The larger the value, the higher the risk. When the risk reaches 70%, CoinEx will issue a liquidation alert; when reaching 100%, the liquidation process will be triggered.

Calculation:

(1) Isolated Margin: Bankruptcy Risk = Maintenance Margin / Position Margin * 100%

(2) Cross Margin: Bankruptcy Risk = Maintenance Margin / (Available Margin + Position Margin)* 100%

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