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How to calculate MoonXBT USDT perpetual contract maintenance margin?

The maintenance margin is the minimum amount of funds required to maintain a position.

The maintenance margin depends on the risk limit chosen by traders. The higher the risk limit level, the lower the maximum leverage available for the trader to use. By default, the risk limit of each trading pair will use the lowest maintenance margin level.

Please note that positions will liquidate when the maintenance margin % level hits 100%.

We can use a formula to calculate the USDT perpetual trading maintenance margin.

Formula:

Maintenance Margin = Position Size × Position Average Price × Maintenance Margin Rate + Estimated Fee to Close Position.

Position Average Price = Total Contract Value / Total Trade Size

Example.

Trader A holds a 0.5 BTC contract at $50,000 with 10x leverage. He expects prices to continue to rise. Therefore, Trader A buys another 0.5 BTC for $52,000. The maintenance margin (MM) rate is 0.5%.

Position Average Price = (0.5 × 50,000) + (0.5 × 52,000) / 1 = 51,000

Maintenance Margin = 1 × 51,000 × 0.5% = 255 USDT

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