How to Calculate Margin When Placing Linear Contract Orders

When a Linear contract order is placed, the estimated margin required will be calculated systematically, that is, to the initial margin and fee required to maintain the position.

When the current order cannot be executed immediately, the initial margin and trading fees will be frozen and calculated at the actual executed price.

 

Margin Calculation

Buying

Initial Margin = Buying Amount * Buying Price * Initial Margin Rate

Buying Trading Fee = Buying Amount * Buying Price * Trading Fee Rate

 

Selling

Initial Margin = Selling Amount * Selling Price * Initial Margin Rate

Selling Trading Fees = Selling Amount * Selling Price * Trading Fee Rate

where:

Initial Margin Rate = 1/Leverage*100%;

Trading Fee: Maker Fee, Taker Fee

The Linear Contract takes USDT as the margin, and the trading unit USDT is also the pricing unit.