At BAQRON, we set margin requirements based on the maximum leverage for cryptocurrency trading (25 to 100 times).
Margin requirements refer to the collateral amount required to open positions in leveraged trading. The required margin amount directly correlates to the leverage used to maintain positions. The higher the leverage ratio, the lower the required margin amount.
To calculate the required margin amount for USDT perpetual contracts, multiply the order value by the margin requirement rate. The margin requirement rate varies depending on the leverage used.
|Required Margin = Contract Size x Entry Price / Leverage
For example, when placing a buy order for 1 BTC at a price of USDT 10,000 using 50x leverage:
|Required Margin = (1 x 10,000) / 50 = 200 USDT
This calculation indicates that 200 USDT is required.
Liquidation (Margin Call):
Liquidation, or margin call, is a method used by cryptocurrency exchanges to forcibly close positions when the unrealized losses of a position exceed the limit set by the exchange to prevent further losses to the customer.
The pink line drawn in the image below represents the liquidation price line. If the position is in a "sell" position, as in this example, it will be automatically liquidated when the price rises above this line. Additionally, specific liquidation prices are displayed in the list below.
This concludes the explanation of margin requirements and liquidation!