Understanding the various metrics associated with your futures contract positions is crucial for effective risk management and strategic trading. This guide breaks down the key terms and calculations you will encounter.
Viewing Your Open Positions
Once your order is filled, you can review your active positions in the "Current Positions" section. The value of your position can be displayed in two units: either in contracts or in the base currency. You can toggle between these views using the unit switch option.
Key Position Metrics Explained
Available Close-Out Quantity
This figure represents the amount of your position that is currently available to close. It is calculated as your total current holding minus any quantity that is frozen pending a close-out order.
Margin
Margin is the collateral required to open and maintain a leveraged position. The method of calculation depends on the type of contract and the margin mode you are using.
USDT-Margined Contracts:
- Cross Margin: Margin = (Face Value × Quantity × Latest Mark Price) / Leverage
- Isolated Margin: Margin = (Face Value × Quantity × Entry Price) / Leverage
Coin-Margined (Inverse) Contracts:
- Cross Margin: Margin = (Face Value × Quantity / Latest Mark Price) / Leverage
- Isolated Margin: Margin = (Face Value × Quantity / Entry Price) / Leverage
Example Calculation:
You are trading a BTCUSDT contract. The latest mark price is $10,000, and you want to open a 1 BTC long position with 10x leverage. Assuming a face value of 0.0001 BTC per contract, the quantity is 1 / 0.0001 = 10,000 contracts.
Your required margin would be: 0.0001 × 10,000 × $10,000 / 10 = 1,000 USDT
In Isolated Margin mode, you can enable the Auto-Margin Supplement feature. When activated, the system will automatically add margin from your available balance to a specific isolated position if its margin ratio falls to a dangerous level, helping to prevent liquidation. You can also manually add margin to an isolated position for precise risk control. 👉 Discover advanced risk management tools
Margin Ratio
The Margin Ratio is a critical indicator of your position's health and risk level.
- Initial Margin Ratio: This is simply 1 / Your Leverage. For 10x leverage, your initial ratio is 10%.
- Maintenance Margin Rate: This is the minimum margin ratio required to keep your position open. If your margin ratio falls to or below the Maintenance Margin Rate plus the closing fee rate, your position will be liquidated.
Calculation Formulas:
- USDT-Margined (Isolated): Margin Ratio = (Initial Margin + Unrealized P&L) / Position Value
- USDT-Margined (Cross): Margin Ratio = (Available Balance + Realized P&L + Unrealized P&L) / (Position Value + Frozen Order Margin × Leverage)
- Coin-Margined (Isolated): Margin Ratio = (Initial Margin + Unrealized P&L) / Position Value
- Coin-Margined (Cross): Margin Ratio = (Available Balance + Realized P&L + Unrealized P&L) / (Position Value + Frozen Order Margin × Leverage)
Liquidation Example:
Using the previous 10x long position (10,000 contracts at $10,000) with a 1.50% maintenance rate and a 0.05% fee rate, your initial margin is 1,000 USDT.
If the mark price drops to $9,010, your unrealized loss is -990 USDT.
Your new margin ratio would be (1,000 - 990) / (0.0001 × 10,000 × 9,010) = 10 / 9,010 ≈ 0.11%.
Since 0.11% < (1.50% + 0.05% = 1.55%), the position is liquidated.
Profit & Loss (P&L) and ROI
- Profit: This is the total gain or loss for your open position, combining any realized profit that has been settled to your balance with the unrealized profit or loss since the last settlement.
- Return on Investment (ROI): This measures the performance of your position, calculated as (Profit / Initial Margin Used).
Average Entry Price
This is the volume-weighted average price at which you opened your position. It provides an accurate view of your actual cost basis. This average will change if you add to your position at a different price.
- USDT-Margined Contracts:
New Avg. Price × (Old Qty + New Qty) = (Old Avg. Price × Old Qty) + (New Fill Price × New Qty) - Coin-Margined Contracts:
(Old Qty + New Qty) / New Avg. Price = (Old Qty / Old Avg. Price) + (New Qty / New Fill Price)
Estimated Liquidation Price
This is the system's projected price at which your position would be liquidated. It is the price where your margin ratio equals the maintenance margin rate plus the closing fee rate. For a long position, liquidation is triggered if the price falls to this level. Using a contract calculator is the most reliable way to determine this price for your specific situation.
Maintenance Margin Rate
This is the minimum margin ratio required to keep your position from being liquidated. It is not a fixed number; it depends on the total size of your position and which "tier" or "level" it falls into according to the exchange's rules.
- Isolated Margin: Each position's quantity is evaluated separately to determine its tier and maintenance rate.
- Cross Margin: All positions in the same contract (both longs and shorts) are summed together to determine the total quantity, tier, and maintenance rate.
Managing All Your Holdings
You can view a complete overview of all your open positions across different contracts in the dedicated "Holdings" section of your trading interface.
Frequently Asked Questions
What is the difference between 'Cross' and 'Isolated' margin?
Cross Margin uses your entire account balance as collateral for all positions, potentially preventing liquidation in one position at the cost of greater overall risk. Isolated Margin confines risk to the capital allocated to a single position, protecting your other funds.
Why did my average entry price change?
Your average entry price is recalculated every time you add to an existing position. The new average is a volume-weighted mean of your original fills and your new fills.
How can I avoid liquidation?
Use lower leverage, monitor your margin ratio closely, employ stop-loss orders, and consider adding more margin to your position (in Isolated mode) if the market moves against you.
Is the estimated liquidation price always accurate?
It is a precise estimate based on current conditions. However, it can change if the exchange's tiered maintenance rates are updated, or if you modify your position.
What happens if I have both long and short positions in the same coin?
In Cross Margin mode, these positions may partially hedge each other. The exchange will typically add the notional values together to determine your tier for maintenance margin requirements.
Can I change my margin mode after opening a position?
Generally, you cannot switch the margin mode for a position that is already open. You would need to close the existing position and open a new one under the desired mode.