Please note that Margin trading on Liquid is unavailable for Singapore residents.
What is Cross Margin?
Cross margin is a margin shared between your positions and backed by your entire wallet balance of the funding currency.
This margin method reduces the risk of liquidation. Any Realised P&L from other closed positions using the same funding currency can aid in adding margin on an opened losing position.
Cross Margin is an effective way to minimize the risks associated with your investment. This margin method is useful for users who are hedging existing positions, and also for arbitragers that do not wish to be exposed on one side of the trade in the event of a liquidation.
What is the Initial Required Margin and Maintenance Margin when opening a Cross Margin position?
Initial Required Margin (IRM) is the minimum required margin you set aside to open the position.
IRM Value = Open Price * Position Size * (1 / Leverage)
A trader opens a cross 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 is the minimum required margin you set aside to open the position.
MM = Order Value * p Where p is the default percentage
The default maintenance margin percentage is p = 2%
What are the funding currencies I can use to trade on Cross Margin?
Isolated margin positions will support existing funding currencies as they do now. These currencies include:
How do I know when is my position will be liquidated when margin maintenance is breached?
Refer here for more information
How do I identify between Cross Margin positions and Isolated Margin positions in my position panel?
Cross Margin positions doesn't have any indicator light before the allocated margin value (green, yellow & red dots).
What are the advantages and disadvantages of Cross Margin, compared to Isolated Margin?
You can use the whole funding account as margin to a position. Therefore, you can reduce your chances of getting liquidated.
Your available balance can be automatically added to your existing isolated positions. For more information refer here
You cannot adjust the amount of margin for each Cross Margin Position
Higher loss of liquidation if no Stop-Loss.
Can your free margin be shared between different cross margin positions?
Yes. Each position is shared the free margin under the same funding currency.
Can I have both cross margin and isolated margin position opened at the same time?