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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