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

MCP=NMCP±PCMCP = NMCP ± P * C

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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