How to Calculate Margin When Placing Inverse Contract Order

When placing an inverse contract order, the system will estimate the required margin, which includes the initial margin and trading fees needed to maintain the position.

If the order cannot be executed immediately, the initial margin and trading fees will be frozen based on the preset buying or selling prices.

 

Margin Calculation

1. Buy

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

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

 

2. Sell

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

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

 

Notes

1. Initial Margin Rate = 1 / Leverage * 100%;

2. Trading fee rate is determined by the corresponding Maker and Taker fee rates, please refer to Futures Trading Fee for details;

3. Inverse contracts use the trading currency as margin, for example, the trading amount and margin of the BTCUSD contract are both priced in BTC.

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