1. Cross Margin
Cross margin refers to the use of all available balances to avoid premature liquidation. Any other position that has achieved profit can help increase the margin on a losing position. Please note that the default setting for all positions is “Cross Margin”.
Role: Reduce the risk of a strong draw and prevent exposure of one position to risk due to a strong draw.
2. Fixed Margin
Under the fixed margin, your maximum loss is limited to the initial margin used. When a position is liquidated, any of your available balance will not be used to increase the margin for this position.
Margin is useful for speculative positions. You can limit the number of losses in this position and help you when your short-term speculative trading strategy fails. In a volatile market, a highly leveraged position may quickly lose its margin. Although the goal of WBFutures is to minimize the occurrence of liquidation events, highly leveraged markets are more likely to be liquidated in volatile markets. For example, a position with a leverage of 50 times and a maintenance margin of 1% will be strongly flattened when the marked price moves 1% in the opposite direction. When using the fixed margin, you can adjust your leverage in real-time through the leverage slider.
Role: You can limit the loss in this position to the initial guaranteed amount, thereby limits the risk when the short-term speculative trading strategy fails.
March 23, 2020