Margin Calculation for BTC/USDT Positions
In calculating margins for BTC/USDT positions, we consider various factors, including write-off margin, net position margin, and order buy margin.
Write-off Margin:
The write-off margin is applied to positions that have been written off. Positions are considered written off when there are multiple open positions that are in opposite directions to each other. For these positions, the write-off margin is 0.5% of the position's value.
Write-off margin calculation:
Write-off margin = (Market buy price + Market sell price) * Write-off size * Contract size * 0.5%
Net Position Margin:
Net position margin is calculated for the net position a user holds. This net position is determined by removing the written-off positions from the total positions. Net position margin depends on the size of the net position, contract size, market direction price, and a margin factor.
Net position margin calculation:
Net position margin = Size of net position * Contract size * Market direction price * Margin factor
Total Margin:
The total margin is the sum of the write-off margin and the net position margin.
Total margin calculation:
Total margin = Write-off margin + Net position margin
Please note that order margins are also taken into account when calculating write-off and net position margins.
Example:
Suppose a user has multiple positions on the BTC/USDT market with a contract size of 1 mBTC (0.001 BTC) and a margin factor of 1% (when position size <= 3500).
| Size | Open Price | Market Direction Price |
| -2 | 28300 USDT | 27200 USDT |
| +3 | 26800 USDT | 27230 USDT |
| -2 | 28500 USDT | 27200 USDT |
Write-off size: 3
Net position: 1
Direction price: 27200
Calculations:
Write-off margin:
= (Buy Price + Sell Price) * Write-off size * Contract size * 0.5%
= (27230+27200) * 3 * 0.001 * 0.5%
= 163.29 USDT * 0.5%
= 0.816 USDT
Net position margin:
= 1 * 0.001 * 27200 * 1%
= 0.272 USDT
Total Margin:
Total margin = Write-off margin + Net position margin
Total margin = 0.816 USDT + 0.272 USDT
Total margin = 1.088 USDT
In this example, the user's total margin requirement is 1.088 USDT.