When trading on our platform, it's important to understand how you can reduce the margin in your open positions. Here, we'll explain two scenarios: when your position is in profit (unrealized P&L is positive) and when your position is in loss (unrealized P&L is negative).
Case 1: When Your Position is in Profit
If your open position is currently in profit (unrealized P&L is positive), you might want to reduce the margin assigned to this position. Here’s how it works:
Check Assigned Margin: First, we check if the margin assigned to your position is greater than the base margin required for it. This is because sometimes the assigned margin may be lower due to fee deductions.
Calculate Maximum Reducible Margin: If the assigned margin is greater than the base margin, you can reduce the margin by the difference between the assigned margin and the base margin.
Formula: MaxReducible = Margin Assigned To Position - Base Margin
Case 2: When Your Position is in Loss
If your open position is currently in loss (unrealized P&L is negative), the process is slightly different:
Calculate Margin Utilised: We calculate the margin utilized due to the loss by taking the absolute value of your unrealized loss and adding a buffer (determined by the max allowed ratio for reduction). This buffer accounts for potential further losses.
Formula: Margin Utilised=(Unrealised P&L) × (1+ Max Allowed Ratio For Reduce)
Check Assigned Margin: Next, we check if the margin assigned to your position is greater than the sum of the base margin and the margin utilized. Again, this is because the assigned margin might be lower due to fee deductions.
Calculate Maximum Reducible Margin: If the assigned margin is greater than the sum of the base margin and the margin utilized, you can reduce the margin by the difference between the assigned margin and this total.
Formula: Max Reducible = Margin Assigned To Position − ( Base Margin+ Margin Utilised)
Why These Checks are Important
These checks ensure that you always maintain the minimum required margin for your position, even after fees or losses. By following these steps, you can safely manage your margin without risking liquidation due to insufficient funds.
If you have any questions or need further assistance, feel free to contact our support team!.
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