Notice on the Introduction of Floating Margin

2021-12-27

Fellow clients,

 

To provide a better trading experience, BTCC will gradually update the margin requirements for each product during the period 2021/12/28-12/30.

 

Below are some FAQs about floating margin for your reference:

 

1. What is floating margin?

 

Before a position is opened, the margin of a product will change with the movement of the market price. Let’s take a leverage 100x as an example:

  • When the price of BTC is 50,000USDT, the margin would be 500USDT.
  • When the price of BTC goes up to 60,000USDT, the margin would be 600UDST.

 

(Before this update, the margin on BTCC will not change in accordance with market fluctuations, which is not flexible)

 

2. Will the margin of my currently held positions change?

 

No, floating margin only applies to new positions. The margin is fixed for opened orders.

 

 

(There is no change to the position margin, which is a fixed amount before and after this update)

 

3. What are the benefits of floating margin?

Floating margin allows users to calculate the margin required to open a position more accurately.

 

Calculation formula:

Margin = number of opened positions * real-time quotes / leverage

 

(Before the update, margin is calculated by the number of positions opened * fixed margin, which means users cannot accurately calculate the margin before opening a position)

 

In summary, after the introduction of floating margin on the platform, it would be easier for users to calculate the margin required to open a position.

 

BTCC