All contracts in XT perpetual contracts require a certain amount of margin, and margin trading also gives the contract greater leverage.
Position margin definition:
Margin used and locked by the current position.
Calculation formula:
Position margin = Starting margin + additional margin - reduced margin + unrealized profit and loss + settled profit and loss
Full margin mode:
In full position mode, the entire available balance of the contract account can be used as a shared margin for all current positions. When the margin of a position is reduced to the maintenance margin, the system will use the available balance in the contract account to automatically increase the margin of the position and replenish it to the initial margin level to avoid the position being forced to close. If the position margin does not reach the level required to maintain the margin after the full available balance is added, the margin is no longer added and the strong leveling process is performed.
Margin mode by position:
In the run mode, the margin of the position is separate from the balance of the trader's account. In this margin model, traders are free to decide how much leverage to use. If a position is forced to close, the maximum loss a trader has to bear is the position margin.
In the process of margin trading, there are the following points to pay attention to:
(1) When adding positions, the position margin increases the position value of the corresponding amount;
(2) When the warehouse is reduced, the deposit shall be reduced according to the proportion of the warehouse reduction;
(3) When the leverage multiple is increased, the position margin remains unchanged due to the reduction of the starting margin;
(4) When the leverage multiple is reduced, the starting margin increases.
a. If the starting margin is less than the current position margin, the position margin remains unchanged;
b. If the starting margin is greater than the current position margin, the corresponding balance is transferred from the available balance to be used as the position margin;
c. If the available balance > the corresponding balance, the leverage multiple is allowed to be adjusted.