How to calculate contract margin ratio?

BiyaPay provides two margin systems: Cross Margin and Isolated Margin. Each mode has different margin calculation methods.

1. Cross Margin Mode

Cross Margin Calculation Method:

All available funds are considered as available margin, and multiple positions share the funds in the account.

USDT-margined Contract Calculation Method:
Initial Margin = Quantity × Mark Price ÷ Leverage Multiple

Since the mark price fluctuates in real time, the initial margin will also change accordingly.

Profit and Loss Sharing: The profit and loss of one position will affect the margin situation of the entire account.

Cross Margin Rate Calculation Method:

Margin Rate = Margin Balance / Maintenance Margin

Margin Balance = Wallet Balance + Unrealized P&L - Isolated Margin Occupied.

Maintenance Margin = Quantity × Latest Price × Maintenance Margin Rate

Applicable Situation: Suitable for traders who want to maximize the use of account funds and reduce liquidation risk, but need to pay attention to overall account risk management.

1. Isolated Margin Mode

Isolated Margin Calculation Method:

Each position calculates margin independently and will not affect the funds of other positions.

USDT-margined Contract Calculation Method:
Opening Margin = Quantity × Opening Average Price ÷ Leverage Multiple

The initial margin remains fixed and will not change with market price fluctuations.

Independent Profit and Loss: The loss of one position will not affect other positions.

Applicable Situation: Suitable for traders who strictly control individual position risk and prevent overall account funds from being affected by fluctuations.

Isolated Margin Rate Calculation Method:

Margin Rate = Margin Balance / Maintenance Margin

Margin Balance = Opening Margin + Unrealized P&L.

Opening Margin = Quantity × Opening Average Price / Leverage Multiple

Maintenance Margin = Quantity × Latest Price × Maintenance Margin Rate