Our zero margin threshold policy is designed to protect traders and maintain market stability. This article explains when and why positions may be closed due to insufficient position margin, and how our alert system works to help you manage your positions effectively.
What is Position Margin?
Position margin is the amount of funds reserved from your account to maintain your open positions. This margin is used to cover various costs, including funding rates. Maintaining adequate position margin is crucial for keeping your positions open and avoiding automatic closures.
Understanding Margin Alerts and Position Closures
When Will You Receive Alerts?
We have implemented a two-tier alert system to help you manage your positions effectively:
- First Alert - 0.5% Margin Level
- You will receive a notification when your position margin falls below 0.5%
- This early warning gives you time to take action
- The alert will be sent through both email and web notifications
- This is your opportunity to add more margin to maintain your position
- Position Closure - 0.2% Margin Level
- Your position will be automatically closed when the margin falls below 0.2%
- This is a protective measure to prevent negative account balance
- All P&L will be credited to your account at the time of closure
- You can reopen positions after adding sufficient margin
How Does This Affect Your Trading?
For Long Positions
- Your position margin decreases as the market price moves against your position
- Funding rates are deducted from your position margin
- The system continuously monitors your margin levels against both the 0.5% and 0.2% thresholds
For Short Positions
- Similar to long positions, your margin decreases with opposite price movements
- Funding rates impact your available margin
- The same alert and closure thresholds apply
Margin Alert for Long & Short Positions: Opening Price * Quantity * 0.5%
Managing Your Position Margin
Preventive Measures
- Regular Monitoring
- Check your position margin regularly
- Pay attention to upcoming funding rate payments
- Monitor market volatility that might affect your margin requirements
- Adding Margin
- You can add margin at any time before the 0.2% threshold is reached
- Additional margin can be transferred from your available balance
- Position Sizing
- Consider your available margin when opening new positions
- Factor in potential market movements and funding rates
- Leave adequate buffer for market volatility
What to Do When You Receive an Alert
- Immediate Actions
- Review your position's current margin level
- Calculate how much additional margin you need
- Decide whether to add margin or close the position voluntarily
- Adding More Margin
- Transfer funds from your available balance
- Deposit additional funds if necessary
- Ensure the added margin is sufficient to maintain your position
- Position Management Options
- Reduce position size to decrease margin requirements
- Close part of your position to free up margin
- Fully close the position if you cannot maintain required margin levels
Important Considerations
Funding Rates Impact
- Funding rates are deducted from your position margin
- High funding rates can quickly deplete your margin
- Consider funding rates when planning your position duration
Market Volatility
- Sudden price movements can quickly affect your margin levels
- Higher volatility may require larger margin buffers
- Consider reducing position size during highly volatile periods
Position Reopening
- After automatic closure, you can reopen positions
- Ensure you have sufficient margin before reopening
- Consider adjusting your position size based on available margin
Getting Help
Customer Support
- Contact our support team for margin-related questions
- Support can help explain margin calculations
- Available 24/7 through our support channels
Best Practices for Margin Management
- Regular Account Review
- Monitor your margin levels daily
- Track your funding rate payments
- Review your position sizes regularly
- Risk Management
- Maintain adequate margin buffer
- Diversify position sizes
- Plan for market volatility
- Account Funding
- Keep additional funds available
FAQ
Q: How quickly do I need to respond to a margin alert?
A: You should take action as soon as possible after receiving a 0.5% margin alert to avoid automatic position closure at the 0.2% threshold.
Q: Can I reopen my position immediately after it's closed?
A: Yes, you can reopen your position immediately after closure, provided you have sufficient margin available.
Q: Will I lose my profits if my position is automatically closed?
A: No, all profits and losses will be credited to your account when the position is closed.
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