This article explains how the margin ratio is calculated in both Cross Margin Mode and Isolated Margin Mode in Futures Trading.
🔍 What is Margin Ratio?
Margin ratio is an indicator that shows the proportion of margin required to maintain a position.
The higher the margin ratio, the higher the risk of liquidation.
💡 Cross Margin Mode Calculation
Formula
👉 Margin Ratio = Maintenance Margin ÷ Margin Balance
Features
In Cross Margin mode, the balance of the same margin asset is shared across all positions.
This means:
・All positions using the same margin asset
・All trading pairs using that asset
share the same margin balance.
💡 Isolated Margin Mode Calculation
Formula
👉 Margin Ratio = Maintenance Margin ÷ Position Margin
Features
In Isolated Margin mode, margin is managed separately for each position.
This means:
・Margin from other positions is not used
・Liquidation is determined individually for each position
⚠️ Important Notice
🚨 The higher the margin ratio, the higher the risk of liquidation.
Please carefully manage your leverage settings and margin balance.
🛡 Best Practices
Please regularly monitor the following:
✅ Maintenance margin
✅ Margin balance
✅ Liquidation price
✅ Open positions
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