This article provides a comprehensive overview of key concepts related to margins and leverage in Bitval’s perpetual futures trading. Whether you’re a new trader or looking to refine your strategies, understanding these elements is crucial for managing risk and optimizing your trades.
We’ll cover initial margin, maintenance margin, cross margin/leverage, and isolated margin/leverage, with detailed explanations, calculations, and examples tailored to Bitval’s platform.
Perpetual futures on Bitval allow you to trade contracts without an expiration date, using leverage to amplify your positions. These concepts apply across various pairs like BTCUSDT or ETHUSDT.
Cross Margin: Ideal for traders managing multiple positions or hedging strategies. It maximizes capital efficiency by sharing collateral but increases overall account risk.
Isolated Margin: Best for containing risks in individual trades, especially high-leverage or experimental ones. You can adjust margin dynamically without affecting other positions.
Mark Price: Bitval uses a fair mark price (based on index prices and funding rates) for all margin calculations to prevent manipulation.
Liquidation Process: If maintenance margin is breached, Bitval initiates partial liquidation first, escalating to full if needed. Use tools like stop-loss orders to manage this.
How do I switch modes?
In the Bitval trading interface, select cross or isolated when opening a position. Switching mid-position may adjust leverage automatically for consistency.
What if I run low on margin?
In isolated mode, add more collateral; in cross, your full balance helps. Monitor your margin ratio closely.
