bitcastle Futures Trading – Initial Margin and Maintenance Margin Calculation (Cross Margin Mode)

This article explains how Initial Margin and Maintenance Margin are calculated in Cross Margin Mode in futures trading.

🔍 Cross Margin Mode – Basic Specifications

In Cross Margin Mode, the basic leverage logic is similar to Isolated Margin Mode.

⚠️ However, please note the following:

• If there are open positions
• If there are unfilled (open) orders

In these cases, leverage cannot be changed.

Leverage can only be adjusted when there are no open positions or orders.

In Cross Margin Mode, traders can manually set their leverage level.

💰 Initial Margin Calculation

Initial Margin is the amount of margin required to open a new position.

📌 Formula
Initial Margin = Entry Price × Position Size ÷ Leverage

This value is used to calculate the margin required when placing an order.

💡 Once the order is filled and the position is opened,
the margin is managed as part of the overall position margin.

🛡 Maintenance Margin Calculation

Maintenance Margin is the minimum margin required to maintain positions.

In Cross Margin Mode, if multiple positions are held,
the maintenance margin is calculated as the sum of all positions.

📌 Formula
Maintenance Margin = Σ (Maintenance Margin Rate of Each Position × Margin of Each Position)

This total value becomes the minimum margin required to maintain all positions.

📊 Key Points of Cross Margin Mode

✅ Margin is shared across the entire account
✅ Maintenance margin of multiple positions is combined
✅ Margin is managed at the account level

⚠️ Important Notes

If your margin balance falls below the required maintenance margin,
positions may be force liquidated.

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