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How does Bitmex calculate the margin for liquidation at different leverage levels?

avatarS O H E LNov 29, 2021 · 3 years ago3 answers

Can you explain how Bitmex calculates the margin for liquidation at different leverage levels? I'm curious to know the specifics of their margin calculation method.

How does Bitmex calculate the margin for liquidation at different leverage levels?

3 answers

  • avatarNov 29, 2021 · 3 years ago
    Bitmex calculates the margin for liquidation by taking into account the initial margin requirement and the maintenance margin requirement. The initial margin requirement is the amount of funds you need to have in your account to open a position, while the maintenance margin requirement is the minimum amount of funds you need to have in your account to keep the position open. The margin for liquidation is calculated based on these requirements and the leverage level you choose. Higher leverage levels require lower margin amounts, but also increase the risk of liquidation if the position moves against you. It's important to carefully consider the leverage level you choose to avoid liquidation.
  • avatarNov 29, 2021 · 3 years ago
    When it comes to margin calculation for liquidation at different leverage levels on Bitmex, the formula used is quite straightforward. The margin required for liquidation is equal to the position size divided by the leverage level. For example, if you have a position size of 1 BTC and you're using 10x leverage, the margin required for liquidation would be 0.1 BTC. It's important to note that the margin required for liquidation may vary depending on the specific contract you're trading on Bitmex, so it's always a good idea to double-check the margin requirements before placing a trade.
  • avatarNov 29, 2021 · 3 years ago
    Bitmex calculates the margin for liquidation at different leverage levels using a formula that takes into account the position size, the leverage level, and the contract specifications. The margin required for liquidation is calculated by dividing the position size by the leverage level. For example, if you have a position size of 1 BTC and you're using 10x leverage, the margin required for liquidation would be 0.1 BTC. It's important to note that Bitmex has different margin requirements for different contracts, so it's always a good idea to check the contract specifications to ensure you have enough margin to avoid liquidation.