Contract

Text

What is the margin system of OKEx's perpetual contracts?

In OKEx's perpetual contracts system, margin acts as a safety net to reduce counterparty risk and ensure traders have sufficient funds to cover potential losses.

Oct 25, 2024 at 05:37 am

Understanding the Margin System of OKEx's Perpetual Contracts

1. Concept of Margin

In perpetual contracts trading, margin refers to a collateral deposited to provide liquidity and reduce counterparty risk. It acts as a safety net, ensuring that traders have sufficient funds to cover potential losses.

2. Margin Ratio

The margin ratio is the ratio of the margin to the face value of the contract. It determines the leverage available to traders. Higher margin ratios imply lower leverage and vice versa.

3. OKEx's Margin System

OKEx employs a cross-margin system for its perpetual contracts. This means that all perpetual contract positions share the same margin pool.

4. Types of Margins

Maintenance Margin: The minimum margin required to keep an open position. If the margin balance falls below this level, a margin call is triggered.
Initial Margin: The margin required to open a new position. It is typically higher than the maintenance margin.

5. Margin Call

When the margin balance falls below the maintenance margin, a margin call is issued. Traders have a limited time to deposit additional funds or close positions to meet the margin requirements.

6. Liquidation

If traders fail to resolve a margin call, their positions may be liquidated forcibly. OKEx uses a three-level liquidation mechanism:

Partial Liquidation: Sell or buy a portion of the position to cover the deficit.
Smart Liquidation: Liquidate positions based on market depth and avoids market impact.
Full Liquidation: Close all open positions and settle the outstanding balance.

7. Auto-Deleveraging

In periods of high volatility, OKEx triggers auto-deleveraging. This reduces overall market leverage by liquidating positions with insufficient margin.

8. Key Features of OKEx's Margin System

Dynamic Margin Ratio: The margin ratio is adjusted based on market volatility.
Loss Protection: Traders can activate stop-loss orders to prevent excessive losses.
Margin Transfer: Traders can transfer margin between different perpetual contract markets.

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.

Fear & Greed Index

Trade Now

Biggest Gainers

SHOGGOTH

$0.1446

79.69%

Trade Now
LUNA

$0.0861

57.46%

Trade Now
DEGEN

$0.0252

42.00%

Trade Now
BULL

$0.0811

33.63%

Trade Now
GODS

$0.2173

26.09%

Trade Now
CAT

$0.0...04815

23.90%

Trade Now

Latest Crypto News

WallitIQ (WLTQ): Investors Positioning For A 34,000% ROI As Dogecoin And Shiba Inu Prices Compete For Dominance
2024-11-15 10:15:01
Fetch.ai (FET) Lags Behind Other AI Coins, Raising Concerns About Its Ability to Maintain Its Position
2024-11-15 10:15:01
Qubetics Redefines Cross-Border Payments with Blockchain, Targeting $707,000 Investment Potential While Algorand and Cosmos Ecosystem Lead November 2024
2024-11-15 10:15:01
Bitcoin Eyes $100,000 as It Continues Its Bullish Uptrend, Inspired by the Notorious Internet Meme, Pepe Outshines Everyone
2024-11-15 10:15:01
Dogecoin Soars After President-Elect Donald Trump Announces the Creation of the Department of Government Efficiency (DOGE)
2024-11-15 08:15:02
PEPE the Meme Coin with a Frog Mascot Took the Crypto World by Storm
2024-11-15 10:15:01

Related knowledge

How to calculate Upbit contract rate

Nov 15,2024 at 04:47am

A Comprehensive Guide to Calculating Upbit Contract RatesUpbit, a leading South Korean cryptocurrency exchange, offers a comprehensive suite of trading options, including cryptocurrency spot trading, margin trading, and futures contracts trading. Futures contracts are financial instruments that allow traders to speculate on the future price of an asset,...

How long does it take for Upbit contract settlement

Nov 14,2024 at 10:10pm

How Long Does It Take for Upbit Contract Settlement?Upbit, a renowned South Korean cryptocurrency exchange, offers a diverse range of trading options, including spot trading and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price movements of underlying assets without taking physical possess...

What is Upbit contract trading

Nov 14,2024 at 10:46pm

What is Upbit Contract Trading?Upbit is a South Korean cryptocurrency exchange that offers a wide range of trading options, including spot trading, margin trading, and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price of a cryptocurrency without having to actually own the underlying asset....

What does Upbit contract trading mean

Nov 14,2024 at 10:22pm

What Does Upbit Contract Trading Mean?IntroductionUpbit, a leading South Korean cryptocurrency exchange, offers a range of trading options, including contract trading. Contract trading is a derivative instrument that allows traders to speculate on the price movements of underlying assets without owning them directly. This can provide opportunities for b...

How to read Upbit contract K-line

Nov 14,2024 at 02:44pm

How to Read Upbit Contract K-lineUpbit is a popular South Korean cryptocurrency exchange that offers a variety of trading options, including spot trading, margin trading, and contract trading. Contract trading is a type of futures trading that allows traders to speculate on the future price of a cryptocurrency without actually owning the underlying asse...

Tutorial on Upbit currency-based contracts

Nov 14,2024 at 06:30pm

Tutorial on Upbit Currency-Based ContractsUpbit is a well-known cryptocurrency exchange in South Korea that offers a variety of trading options, including currency-based contracts. These contracts are a type of derivative that allows traders to speculate on the price of an underlying asset, such as Bitcoin or Ethereum, without having to own the asset it...