How to Calculate Margin When Placing Inverse Contract Order

When an Inverse 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 = Contract Amount * Contract Value / Buying Price * Initial Margin Rate

Buying Trading Fee = Contract Amount * Contract Value / Buying Price * Trading Fee Rate

Selling

Initial Margin = Contract Amount * Contract Value / Selling Price * Initial Margin Rate

Selling Trading Fee = Contract Amount * Contract Value / Selling Price * Trading Fee Rate

where:

Initial Margin Rate = 1/Leverage*100%;

The Inverse Contract takes the trading coin as the margin, and for example, the trading unit for the Inverse Contract BTCUSD is BTC.