In the isolated mode, the following methods can be used to adjust the position margin.
Automatic margin call
An automatic margin call is a function that allows traders to automatically add a margin to the part that has been held for the purpose of avoiding liquidation. Once the automatic margin call function is enabled, whenever your margin level is about to reach the maintenance margin level, Deepcoin will use your available balance to fill the margin. The added amount is equal to the initial margin of your current position. If the available balance is insufficient, Deepcoin will use all the remaining balance to fill the margin of the position. When the margin is added, you can see that the liquidation price is further away from the marked price.
When the automatic margin call is activated, the minimum leverage that can be used for the position is 1x. When a position is already using 1x leverage, even if there is an available balance, the margin will not be added.
Manual adjustment of margin
Traders are allowed to increase/decrease positions margin under the mode of isolated margin.
After increasing the position margin, the leverage of opening a position and the leverage of the order area will not be affected. The liquidation price will be recalculated based on the new position margin. After reducing the position margin, the position margin must not be less than (initial margin + estimated margin for closing positions).
Note: Automatic margin call and manual margin adjustment will not affect leverage
Adjust position leverage
Isolated position: margin required to open a position = face value * contract size * average price of opening a position/leverage;
Increase or decrease the corresponding used margin when adjusting leverage:
(1) Leverage can be adjusted to a larger amount
Maximum leverage x=min {system maximum multiple, If{unrealized profit and loss<0, -0.5* open interest *contract face value/(average position price*unrealized profit and loss),9999} };
Note: Consider the situation that the loss cannot be adjusted to a certain threshold:
Unrealized profit and loss ≥- open interest *contract face value/(average position price*leverage)*50%
(2) Leverage can be adjusted to a smaller amount
Minimum leverage x = open interest * contract face value / (average open position price * (used margin + usable margin))
Deepcoin perpetual contracts provide the function of adjusting position leverage. When the user wants to increase the leverage, the system detects that the adjusted leverage is less than the maximum leverage of the current contract value, and the adjustment is successful. After the adjustment, the margin required to open the current position will be reduced.
When the user lowers the leverage, the margin required to hold the position will increase. When the system detects that there is enough available balance in the account to add, the position leverage can be adjusted successfully.
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