Margin Call Price
The price when the position is margin called.
The margin call price for a position is calculated based on the entry price and amount of collateral provided. The higher the leverage, the lower the collateral amount, therefore the higher the risk of a margin call.
When a position is margin called, it is closed at the market price, and all remaining collateral is returned to the user.
Positions can only be margin called using the Mark Price (the price from the price source).
Margin Call Price Formula
Definitions
Parameter
Description
MCP
Margin Call Price
NMCP
Net Margin Call Price
P
Entry Price
C
Margin Call Coefficient
M
Margin (Collateral)
MOV
Allowed price movement before margin call
FC
Funding Cost
S
Position Size
FB
Funding Blocks (the number of blocks the position is opened for)
FR
Funding Rate (rate per block)
L
Leverage
MM
Maintenance Margin
Formulas
Parameter
Formula
NL
P ± MOV
MOV
(M - FC) / S
FC
S * P * FB * FR
C
MM / L
L
P * S / M
Use Stop-Limit (Stop-Loss) orders to prevent the position from getting liquidated!
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