1. The Concept of Risk Limit
As the risk limit increases, the maintenance margin and initial margin requirements will increase stepwise (step margin for example). The system will automatically increase or decrease the risk limit according to the client's positions and the amount of unsettled open orders. Margin requirements will increase or decrease as the risk limit changes.
2. Risk Limit Gear Parameters
|Trading Pair||Risk Limit（Face）||Initial Margin Ratio||Maintenance Margin Rate||Maximum Leverage|
3. Applicable Scene
The management background sets the risk limit ladder and the corresponding margin rate. When a customer places an order, the system will automatically increase or decrease the risk limit according to the customer's holdings and the amount of unsettled open orders and match the corresponding initial margin rate and maintenance margin rate.
4. The Relationship between Margin and Risk Limits
Each Future has a basic margin risk limit and incremental amounts. These numbers combine the basic maintenance and initial margin requirements and are used to calculate the complete margin requirement for each position.
As positions increase, so will the maintenance and initial margin requirements. After the user's position reaches the next level of margin risk limit, the system will automatically adjust the user's margin requirement, which will increase or decrease as the risk limit changes.
5. Position Limit
To control extreme risks, the WT Futures will set a position limit for all futures. When you place an order, the amount of open positions plus the amount of open orders exceeds the limit of the open positions, you cannot place an order. Limit of each order: In order to avoid the unpredictable impact of similar events on the Oolong Index, the WT Futures limits the number of each order, and orders beyond the limit will not be submitted.
6. Number of Outstanding Orders
Orders that are not for transaction purposes will dramatically increase the number of outstanding orders in the system. WBFutures allows each user to have 10 outstanding orders.
April 4, 2020