-
Bitcoin $95,091.9652
1.57% - Ethereum
$1,803.9064
1.26% - Tether USDt
$1.0003
0.00% - XRP
$2.3000
2.18% - BNB
$606.4848
0.31% - Solana
$148.2390
0.42% - USDC
$1.0002
0.02% - Dogecoin
$0.1791
0.69% - Cardano
$0.7052
0.86% - TRON
$0.2492
1.95% - Sui
$3.5293
0.30% - Chainlink
$15.1218
3.97% - Avalanche
$21.9229
1.80% - Stellar
$0.2830
-0.50% - UNUS SED LEO
$8.9901
-0.94% - Toncoin
$3.2803
0.09% - Shiba Inu
$0.0...01372
2.25% - Hedera
$0.1909
0.58% - Bitcoin Cash
$361.2678
4.48% - Polkadot
$4.2763
4.65% - Litecoin
$85.8789
0.63% - Hyperliquid
$18.7515
7.54% - Dai
$1.0001
0.00% - Bitget Token
$4.4092
1.25% - Monero
$261.3452
11.12% - Ethena USDe
$0.9995
0.00% - Pi
$0.6116
-3.01% - Pepe
$0.0...08954
2.48% - Aptos
$5.5584
3.58% - Uniswap
$5.4707
-0.20%
How much margin is required for a CoinEx contract to avoid liquidation?
To avoid liquidation on CoinEx, traders must maintain a margin balance that meets the formula: Required Margin = Position Size * Mark Price * Maintenance Margin Ratio.
Dec 02, 2024 at 12:12 pm
How much margin is required for a CoinEx contract to avoid liquidation?
Margin trading on CoinEx, like any other exchange, involves borrowing funds to increase your trading capital and potentially amplify your profits. However, it also magnifies your potential losses, and if your trade moves against you, you may face liquidation.
Liquidation occurs when your margin balance falls below a certain level, known as the maintenance margin. At this point, CoinEx will automatically close your position to cover its losses. To avoid liquidation, it's crucial to maintain a sufficient margin balance relative to your position size.
The formula for calculating the required margin
To determine the exact margin required to avoid liquidation on CoinEx, you need to consider the following factors:
- Position Size: The number of contracts you're trading.
- Mark Price: The current market price of the underlying asset.
- Maintenance Margin Ratio: The minimum margin balance required to maintain your position, expressed as a percentage.
The formula for calculating the required margin is:
Required Margin = Position Size * Mark Price * Maintenance Margin RatioStep-by-Step Guide to Calculating Required Margin
Follow these steps to calculate the required margin for a CoinEx contract:
- Determine Your Position Size: Calculate the number of contracts you intend to trade. For instance, if you want to trade 10 BTC contracts, your position size would be 10.
- Identify the Mark Price: The mark price is the reference price used by CoinEx to determine your liquidation level. You can find the mark price on the CoinEx trading interface. For example, if the mark price of BTC is $20,000, note this value.
- Check the Maintenance Margin Ratio: This ratio varies depending on the contract type and leverage used. For perpetual contracts with 10x leverage, the maintenance margin ratio on CoinEx is typically 10%.
- Calculate the Required Margin: Plugging in the values from steps 1-3 into the formula, you get:
Required Margin = 10 (position size) * $20,000 (mark price) * 10% (maintenance margin ratio) = $20,000Therefore, to avoid liquidation on a CoinEx contract with 10x leverage and a position size of 10 BTC contracts, you would need to maintain a margin balance of at least $20,000.
Conclusion
Calculating the required margin for a CoinEx contract is essential for managing your risk and avoiding liquidation. By following these steps and understanding the underlying formula, you can ensure that you have sufficient margin to withstand market volatility and protect your trading capital.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- The Web3 gaming model is booming, but many small creators are still struggling.
- 2025-04-29 08:40:12
- The 3 Best Meme Coins to Buy Now: Pudgy Penguins (PENGU) Gains 29% Today
- 2025-04-29 08:40:12
- Pre-AIO market sentiment analysis of the Cosmos (ATOM) and Dogwifhat (WIF) price
- 2025-04-29 08:35:12
- Qubetics, Kidney, Bittensa, arbitrator: 4 Cryptos Watch in 2025
- 2025-04-29 08:35:12
- Rice Robotics Partners with Floki to Launch a Floki-Themed Robot and RICE Token
- 2025-04-29 08:30:12
- BlockDAG (BDAG): Turning the Presale into a Competitive Arena
- 2025-04-29 08:30:12
Related knowledge
How to trade LINK contracts? Things to note when trading with leverage
Apr 28,2025 at 08:01pm
Trading LINK contracts, particularly with leverage, can be an exciting yet risky endeavor. LINK, or Chainlink, is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Trading LINK contracts involves speculating on the price movements of LINK without owning the actual cryptocurrency. When you trade with lever...
Which is better for beginners, Dogecoin futures or spot trading? Is leverage trading risky?
Apr 29,2025 at 04:49am
When deciding whether Dogecoin futures or spot trading is better for beginners, it's important to understand the fundamental differences between these two trading methods and their respective risks. Dogecoin spot trading involves buying and selling the actual cryptocurrency at the current market price. This method is straightforward and allows beginners...
When will the leverage multiple adjustment take effect? Will the leverage change affect the existing position?
Apr 28,2025 at 02:36am
Understanding Leverage Multiple Adjustments in Cryptocurrency TradingIn the realm of cryptocurrency trading, leverage is a powerful tool that allows traders to amplify their trading positions beyond their initial capital. However, adjustments to leverage multiples are a critical aspect that traders must understand thoroughly. This article delves into wh...
Why is the profit and loss of the contract not in line with expectations? Does the calculation of unrealized profit and loss include handling fees?
Apr 27,2025 at 09:14pm
In the world of cryptocurrency trading, especially when dealing with futures and options contracts, traders often find themselves puzzled by discrepancies between their expected and actual profit and loss (P&L). This article delves into the reasons behind such discrepancies and explores whether the calculation of unrealized profit and loss includes hand...
How to play Bybit copy trading? What are the potential risks of following the operation of experts?
Apr 27,2025 at 07:21pm
How to Play Bybit Copy Trading? What Are the Potential Risks of Following the Operation of Experts? Bybit copy trading is a popular feature among cryptocurrency traders looking to benefit from the expertise of seasoned professionals. This article will guide you through the process of engaging in Bybit copy trading and explore the potential risks associa...
What happens if the position margin is insufficient? Where can I view the margin call notification?
Apr 28,2025 at 03:56pm
In the world of cryptocurrency trading, managing your position margin is crucial to maintaining open positions. If the position margin becomes insufficient, it can lead to a series of events that may impact your trading activities. Understanding what happens when the margin is insufficient, as well as how to view margin call notifications, is essential ...
How to trade LINK contracts? Things to note when trading with leverage
Apr 28,2025 at 08:01pm
Trading LINK contracts, particularly with leverage, can be an exciting yet risky endeavor. LINK, or Chainlink, is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Trading LINK contracts involves speculating on the price movements of LINK without owning the actual cryptocurrency. When you trade with lever...
Which is better for beginners, Dogecoin futures or spot trading? Is leverage trading risky?
Apr 29,2025 at 04:49am
When deciding whether Dogecoin futures or spot trading is better for beginners, it's important to understand the fundamental differences between these two trading methods and their respective risks. Dogecoin spot trading involves buying and selling the actual cryptocurrency at the current market price. This method is straightforward and allows beginners...
When will the leverage multiple adjustment take effect? Will the leverage change affect the existing position?
Apr 28,2025 at 02:36am
Understanding Leverage Multiple Adjustments in Cryptocurrency TradingIn the realm of cryptocurrency trading, leverage is a powerful tool that allows traders to amplify their trading positions beyond their initial capital. However, adjustments to leverage multiples are a critical aspect that traders must understand thoroughly. This article delves into wh...
Why is the profit and loss of the contract not in line with expectations? Does the calculation of unrealized profit and loss include handling fees?
Apr 27,2025 at 09:14pm
In the world of cryptocurrency trading, especially when dealing with futures and options contracts, traders often find themselves puzzled by discrepancies between their expected and actual profit and loss (P&L). This article delves into the reasons behind such discrepancies and explores whether the calculation of unrealized profit and loss includes hand...
How to play Bybit copy trading? What are the potential risks of following the operation of experts?
Apr 27,2025 at 07:21pm
How to Play Bybit Copy Trading? What Are the Potential Risks of Following the Operation of Experts? Bybit copy trading is a popular feature among cryptocurrency traders looking to benefit from the expertise of seasoned professionals. This article will guide you through the process of engaging in Bybit copy trading and explore the potential risks associa...
What happens if the position margin is insufficient? Where can I view the margin call notification?
Apr 28,2025 at 03:56pm
In the world of cryptocurrency trading, managing your position margin is crucial to maintaining open positions. If the position margin becomes insufficient, it can lead to a series of events that may impact your trading activities. Understanding what happens when the margin is insufficient, as well as how to view margin call notifications, is essential ...
See all articles
