{"id":4610,"date":"2023-01-10T18:54:53","date_gmt":"2023-01-10T10:54:53","guid":{"rendered":"https:\/\/www.picol.com\/blog\/?p=4610"},"modified":"2024-11-07T15:11:01","modified_gmt":"2024-11-07T07:11:01","slug":"maintenance-margin","status":"publish","type":"post","link":"https:\/\/www.picol.com\/blog\/en\/maintenance-margin\/","title":{"rendered":"Maintenance Margin"},"content":{"rendered":"\n<h2 id=\"what-is-maintenance-margin\">What is Maintenance Margin?<\/h2>\n\n\n\n<p>Maintenance Margin is a crucial term in trading, especially in futures. It refers to the minimum Margin Equity (i.e. Margin + unrealized PnL) that a user must maintain to keep their leveraged position. The Maintenance Margin is calculated based on the\u00a0<a href=\"https:\/\/www.picol.com\/blog\/en\/notional-value\/\">position notional value<\/a>, at different margin tiers.<\/p>\n\n\n\n<p>The Maintenance Margin is calculated based on the notional value level of the position. This means that regardless of the chosen leverage level, the calculation method for the Maintenance Margin for the same notional value level remains the same. Increasing the notional value level of a position does not change the leverage level of the previous level. The larger the position value, the higher the Maintenance Margin Rate.<\/p>\n\n\n\n<p>It should be noted that Maintenance Margin directly affects the liquidation price. To avoid liquidation, it is strongly recommended that you close your position before the Margin Equity reaches the Maintenance Margin.<\/p>\n\n\n\n<h2 id=\"how-to-calculate-maintenance-margin\">How to Calculate Maintenance Margin<\/h2>\n\n\n\n<p><strong>Maintenance Margin =\u00a0<a href=\"https:\/\/www.picol.com\/blog\/en\/notional-value\/\">Position Notional Value<\/a>\u00a0* Maintenance Margin Rate \u2013 Margin Amount<\/strong><\/p>\n\n\n\n<p>Using BTCUSDT perpetual as an example:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Risk Level<\/th><th>Position Notional Value<\/th><th>Max Leverage<\/th><th>Maintenance Margin Rate<\/th><th>Margin Amount<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>0 \u2013 150,000<\/td><td>100x<\/td><td>0.50%<\/td><td>0<\/td><\/tr><tr><td>2<\/td><td>150,000 \u2013 500,000<\/td><td>25x<\/td><td>1.00%<\/td><td>750<\/td><\/tr><tr><td>3<\/td><td>500,000 \u2013 2,000,000<\/td><td>15x<\/td><td>2.50%<\/td><td>8250<\/td><\/tr><tr><td>4<\/td><td>2,000,000 \u2013 5,000,000<\/td><td>10x<\/td><td>5.00%<\/td><td>58250<\/td><\/tr><tr><td>5<\/td><td>5,000,000 \u2013 10,000,000<\/td><td>5x<\/td><td>10.00%<\/td><td>308250<\/td><\/tr><tr><td>6<\/td><td>10,000,000 \u2013 20,000,000<\/td><td>2x<\/td><td>25.00%<\/td><td>1808250<\/td><\/tr><tr><td>7<\/td><td>20,000,000 \u2013 100,000,000<\/td><td>1x<\/td><td>50.00%<\/td><td>6808250<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>For example, if you use 20x leverage to buy 10 BTCUSDT at a price of 20,000 USDT, the position notional value would be&nbsp;<code>20,000 * 10 = 200,000 USDT<\/code>. If your position is in the 2nd risk level, the margin required would be&nbsp;<code>200,000 \/ 20 = 10,000<\/code>, and the Maintenance Margin would be&nbsp;<code>200,000 * 1.00% - 750 = 1,250<\/code>.<\/p>\n\n\n\n<p>The Maintenance Margin can also be calculated by splitting the notional value, where 150,000 is in risk level 1 and the remaining&nbsp;<code>200,000 - 150,000 = 50,000<\/code>&nbsp;is in risk level 2. The Maintenance Margin would be&nbsp;<code>150,000 * 0.50% + (200,000 - 150,000) * 1.00% = 1,250<\/code>. The results of both methods are the same, indicating that the purpose of the quick calculated amount of Maintenance Margin is to simplify the calculation.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>The data in the document may not be the latest. For the latest data, please refer to the app:<\/p><p>Markets \u2192 Futures \u2192 BTCUSDT \u2192 Information \u2192 Leverage &amp; Margin.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>What is Maintenance Margin? Maintenance Margin is a cru &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/www.picol.com\/blog\/en\/maintenance-margin\/\"> <span class=\"screen-reader-text\">Maintenance Margin<\/span> \u67e5\u770b\u5168\u6587 &raquo;<\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[40],"tags":[],"_links":{"self":[{"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/posts\/4610"}],"collection":[{"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/comments?post=4610"}],"version-history":[{"count":2,"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/posts\/4610\/revisions"}],"predecessor-version":[{"id":4622,"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/posts\/4610\/revisions\/4622"}],"wp:attachment":[{"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/media?parent=4610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/categories?post=4610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.picol.com\/blog\/wp-json\/wp\/v2\/tags?post=4610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}