1. Introduction
Users can increase/reduce the margin of their positions to make the position less prone to liquidation.
Increase Margin
- Adding margin moves your estimated liquidation price farther away (Reducing the risk of being liquidated).
- Less principal available in the account.
Reduce Margin
- Reducing margin brings your liquidation price closer (Increasing the risk of forced liquidation).
- More principal available in the account.
2. How to adjust margin
App: Locate the pencil icon at the right side of the Margin tab from position details on the Orders page.
Web: Locate the pencil icon from the Margin (Leverage) column inside the My Positions tab.
3. Rules for Margin Adjustment
1.Cross margin mode does not support margin adjustment.
2. Currently margin adjustment is not supported for orders of Copy Trading, including traders' copied orders and copiers’ copy orders.
3. Inside the 'Adjust Margin' pop-out window, the system will automatically calculate the Max. Increase/Decrease margin amount for the current position, as well as the Estimated Liquidation Price after the adjustment.
Why Adjustment Failed
1. The TP/SL setting will be triggered right after the adjustment.
2. The Max. Take Profit will be triggered right after the adjustment.
3. The Estimated Liquidation Price will be closer to the current price compared with the SL price after the adjustment (that is, the order will be liquidated before the SL price is reached).
The Impact of Margin Adjustment on the TP/SL Price
1. If users set the TP/SL by price, there is no effect on the TP/SL Price after adjustment.
2. If users set the TP/SL by ratio, the TP/SL Price will change as follows after adjustment.
1) After reducing the margin, the TP/SL price will be closer to the "Open Price".
The TP/SL is set based on the ratio of the margin; the ratio remains the same. When the margin is reduced, the estimated take profit/stop loss amount will be smaller, which means the TP/SL setting will be easier to trigger.
2) After increasing the margin, the TP/SL Price will be farther away from the "Open Price".
The TP/SL is set based on the ratio of the margin; the ratio remains the same. When the margin is increased, the estimated take profit/stop loss amount will be larger, which means the TP/SL price will be harder to reach.
The relevant calculations are as follows:
USDT-Margined Orders - TP/SL by Ratio
Estimated TP/SL Price = TP/SL Ratio * Open Price * Margin / (Transaction Direction * Trading Volume) + Open Price
Coin-Margined Orders —— TP/SL by Ratio
Estimated TP/SL Price = (Transaction Direction * Trading Volume * Open Price)/ (Transaction Direction * Trading Volume - TP/SL Ratio * Margin)
Tips: When the calculation result of the estimated TP/SL Price is ≤0, it indicates that the entered value of the TP/SL setting is invalid.
Notes:
When adding margin in isolated margin mode, the maximum decrease amount (Max. Decrease) may not match your added funds. The system dynamically calculates Max. Decrease based on your position's risk exposure, especially when the position is at unrealized loss or when market volatility increases. To maintain risk control, Max. Decrease may be less than what you originally added.
Example:
The user's initial margin was 20 USDT, with an additional 20 USDT added later. With a current unrealized loss of 5 USDT, the system's risk assessment at the current price level only permits reducing up to 15 USDT margin, not the full 20 USDT. (The actual Max. Decrease will be displayed on the page.)
Notes:
According to platform policies, whether users can fully reduce added margin depends on current position risk levels and system risk control calculations. The actual Max. Decrease amount will be the lower value determined by these two rules:
Rule 1: Maintain a Basic Risk Control Fund
The system must set aside maintenance margin and close fees before any margin can be reduced.
Calculation:
A = Fixed Margin - Maintenance Margin - Close Fees
Rule 2: Ensure Position Safety at Current Market Price
Even if your position isn't at a loss, the system calculates how much margin would be needed to open this same position at the current market price. You can't reduce your margin below this value.
Calculation:
B = Fixed Margin + Unrealized PnL - Market Price × Position Size ÷ Leverage
The Max. Decrease:
max[0, min(A, B)]
