Please note that Margin trading on Liquid is unavailable for Singapore residents.
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.
Your available balance would NOT be automatically added to your existing isolated positions.
The maximum amount you would lose from liquidation is the margin you placed on the position, thus allowing you to manage each individual position’s risk better, compared to using the cross-margin method. When using Isolated Margin, you are able to adjust the amount of margin for each position.
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)
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
The default maintenance margin percentages is p = 2%.
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:
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.
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 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?
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.
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?