# Positions

# Position Margin Calculation

# Linear Futures

Position margin is dynamically calculated based on the mark price:

Position Margin = Position Size × Mark Price × Initial Margin Rate

# Example - Linear Future

Given:

Position: Long 2 BTC
Mark Price: $50,000
Initial Margin Rate: 1%

Position Margin = 2 × $50,000 × 0.01 = $1,000 USD

If mark price changes to $51,000:

New Position Margin = 2 × $51,000 × 0.01 = $1,020 USD

# Inverse Futures

Position margin remains constant regardless of mark price changes, because the instrument is denominated in the margin currency. The contract value does not change in margin currency terms.

Position Margin = (Position Size / Entry Price) × Initial Margin Rate

# Example - Inverse Future

Given:

Position: Short 100,000 USDT
Entry Price: $50,000
Initial Margin Rate: 1%

Position Margin = (100,000 / 50,000) × 0.01 = 0.02 BTC

If mark price changes to $51,000, margin requirement remains 0.02 BTC.

# Position-Closing Orders

# Basic Position-Closing

Position-closing orders do not consume additional margin.

# Example

Given:

Current Position: Long 2 BTC
Available Margin: $100 USD
Mark Price: $50,000

A sell order for 2 BTC will be accepted even with minimal available margin, as it closes the position.

# Position-Closing with Existing Orders

When placing a position-closing order while other closing orders exist, margin may be required for existing orders.

# Example

Given:

Current Position: Long 3 BTC
Existing Sell Order: 3 BTC at $52,000
New Sell Order: 3 BTC at $51,000
Initial Margin Rate: 1%

Required Margin for Existing Order = 3 × $52,000 × 0.01 = $1,560 USD

The new order requires margin for the existing order since it would execute first, meaning that the existing order no longer offsets the position, and therefore consumes margin.

# Mixed Position and Order Scenarios

# Partial Position-Closing

Orders that both close positions and open new positions have split margin requirements.

# Example

Given:

Current Position: Long 2 BTC
New Sell Order: 5 BTC
Mark Price: $50,000
Initial Margin Rate: 1%

Position-Closing Portion (2 BTC): No margin required
Position-Opening Portion (3 BTC): 3 × $50,000 × 0.01 = $1,500 USD

# Net Margin Calculation

The system evaluates both sides independently and uses the higher margin requirement.

# Example

Given:

Current Position: Long 3 BTC
Buy Orders: 2 BTC
Sell Orders: 4 BTC
Mark Price: $50,000
Initial Margin Rate: 1%

Long Side Calculation:
Position (3 BTC) + Buy Orders (2 BTC) = 5 BTC
Margin Required = 5 × $50,000 × 0.01 = $2,500 USD

Short Side Calculation:
Position (3 BTC) + Sell Orders (4 BTC) = 4 BTC
(Only counting the position-opening portion)
Margin Required = 4 × $50,000 × 0.01 = $2,000 USD

Final Margin Required = max($2,500, $2,000) = $2,500 USD

# Emergency Position-Closing

Accounts can always place position-closing orders, even when the account exceeds maximum initial margin usage.

# Example

Given:

Position: Long 5 BTC
Available Margin: $0 USD
Initial Margin Usage: 100%

A sell order for ≤ 5 BTC will be accepted as it reduces position risk.