Isolated Margin FAQ

We have launched our new Isolated margin on Liquid platform. Below is all you need to know about our new Isolated margin.

What is Isolated Margin?
Isolated margin is the margin placed into a single position, and is isolated from other positions in your funding currency account balance.

Who can trade on Isolated Margin?

Users from supported countries are eligible to trade on Isolated margin.

Accounts which are declined by our Account Verification process and accounts which are banned are not eligible to trade on Isolated margin.

What is the Initial Required Margin and Maintenance Margin when opening an Isolated Margin position?
Initial Required Margin (IRM)
will be 100% of the necessary coverage to create the position. This value is impacted by the amount of leverage the user selects when opening a position.

IRM Value = Open Price * Position Size * (1 / Leverage)

Note : for Infinity, IRM is 1% for the first 50 BTC (100x leverage) and increase in step of 0.5% for every additional 50 BTC added to the combined position.
Refer here for more information.

 Example :

A  trader opens an isolated margin position with an order value of 8,000 USD with the position size of 2 BTC. The user selects a leverage level of 4x. In this case, the user will need to post an IRM of 4,000 USD to create the order.

Margin Maintenance will have a default percentage which is the amount needed to maintain the open position. 

MM = Order Value * p  Where p is the default percentage

Default maintenance margin percentages will be as follows:

For margin trading, p =  2%

For Liquid Infinity trading, p = 0.5% for the first 50 BTC (100x leverage) and increase in step of 0.5% for every additional 50 BTC added to the combined position.
Refer here for more information.

What are the funding currencies I can use to trade on Isolated Margin?
Isolated margin positions will support existing funding currencies as they do now. These currencies include:

Fiat

  • USD
  • JPY
  • EUR
  • SGD
  • AUD

Important: Funding currencies for isolated positions will be limited to the quote currency of the currency pair in which the user is wanting to open an order.

Example

If a user wants to open a short or long position with isolated margin in the BTC/JPY exchange, they can only fund their position with JPY.

What is the trading fees for Isolated Margin?

  • Maker: 0.05% if paid in QASH*; 0.10% if not paid in QASH*
  • Taker: 0.05% if paid in QASH*; 0.10% if not paid in QASH*

Refer here for more information.

What are the funding fees for Isolated Margin?
Refer here for more information.

How do I know what is my position liquidation price?
Refer here for more information

 

How do I identify between Isolated Margin positions and Cross Margin positions in my position panel?
Isolated Margin positions have an indicator light before the allocated margin value (green, yellow & red dots).

What are the advantages and disadvantages of Isolated Margin, compared to Cross Margin?
Advantages:

  • You can restrict a certain amount of the margin to a position. Therefore, you can limit your losses
  • You can adjust the amount of margin for each Isolated Margin position.

Disadvantages:

  • Higher risk of liquidation 
  • Your available balance would NOT be AUTOMATICALLY added to your existing isolated positions

Can allocated margin amount be shared between different isolated positions?
No. Each isolated position has its own allocated margin.


Can I have both cross margin and isolated margin position opened at the same time?
Yes. 

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