2024-09-10 12:36:44The Unified Trading Account (UTA) supports three (3) margin modes: Isolated Margin (IM), Cross Margin (CM), and Portfolio Margin (PM). By default, the UTA is set to Cross Margin, but you can select the margin mode that best suits your trading strategy.
It's crucial to understand that the selected margin mode will apply to your entire account, meaning that you cannot choose different margin modes for individual trading pairs. Below is a comparison of the three margin modes available under the UTA.
Comparison of Margin Modes
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Isolated Margin |
Cross Margin (By Default) |
Portfolio Margin |
|
User Profile |
Spot and Derivatives Traders |
Spot and Derivatives Traders |
Professional Derivatives Traders |
|
Supported Products |
Spot USDT Perpetual USDC Futures USDC Perpetual Inverse Perpetual Inverse Futures |
Spot Spot Margin USDT Perpetual USDC Futures USDC Perpetual USDC Option Inverse Futures Inverse Perpetual |
Spot Spot Margin USDT Perpetual USDC Futures USDC Perpetual USDC Option Inverse Futures Inverse Perpetual |
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Criteria Required |
No |
No |
Net Equity ≥ $1,000 USD |
|
Position Mode |
One-way Mode, Hedge Mode (USDT-Perp Only) |
One-way Mode, Hedge Mode (USDT-Perp Only) |
One-way Mode |
Margin Rate (Account Based) |
Not applicable |
Initial Margin Rate, Maintenance Margin Rate |
Initial Margin Rate, Maintenance Margin Rate |
Margin Calculation |
Calculated based on individual positions. |
Calculated based on individual positions. |
Calculated based on the risk of an entire portfolio, potentially reducing required margin if the portfolio is well-balanced with hedging positions.
For more details, please refer to |
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Asset Mode |
Single Asset Mode: Only the settlement assets can be used for trading the corresponding contracts.
For example, USDT can only be used to trade USDT contracts, while USDC can only be used for trading USDC contracts. |
Multiple-Assets Mode: All collateralized assets are converted into USD value for Spot Margin and Derivatives trading.
For example, with BTC holding, you can use BTC as collateral and the respective USD value can be used for USDT perpetual trading. |
Multiple-Assets Mode: All collateralized assets are converted into USD value for Spot Margin and Derivatives trading.
For example, with BTC holding, you can use BTC as collateral and the respective USD value can be used for USDT perpetual trading. |
Leverage Settings |
Different leverage can be set for long and short positions. |
Hedged positions (long and short) must use the same leverage |
Not applicable |
Liquidation Trigger Criteria |
Liquidation is triggered when Mark Price reaches Liquidation Price |
Liquidation is triggered when Account Maintenance Margin Rate reaches 100% |
Liquidation is triggered when Account Maintenance Margin Rate reaches 100% |
Liquidation Price Display (Derivatives) |
The Liquidation Price display is the actual liquidation trigger price. |
The liquidation price display is an estimate and reference only, as the actual trigger is when Account MMR reaches 100%. |
Not applicable |
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Supports Spot Margin Trading? |
No |
Yes |
Yes |
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Able to offset P&L of Derivatives Positions? |
No |
Yes |
Yes |
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Able to use unrealized profits from perpetual & futures contract to open new positions? |
No |
Yes |
Yes |
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Support Auto Margin Replenishment |
Yes |
No |
No |
|
Support Borrowings |
No |
Yes |
Yes |
Criteria for Switching Between Margin Modes
Switch from Cross/Portfolio Margin to Isolated Margin:
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No Options orders or positions.
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No Spot Margin Trading Orders.
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Sufficient assets to cover increased margin.
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No existing borrowings.
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Spot Margin Trading disabled.
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The Mark Price of the symbol of your existing positions or order should not be worse than the liquidation price of the position after switching to IM mode.
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Assets are sufficient to allocate to each position without triggering liquidation after switching to IM mode.
After switching to Isolated Margin mode successfully,
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Spot Margin trading is disabled by default
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Auto Margin Replenishment is disabled by default
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Collateral switch is disabled by default
Switch from Isolated/Portfolio Margin to Cross Margin:
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Initial Margin rate must be ≤ 100% after switching.
After switching to Cross Margin mode successfully,
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Spot Margin trading is enabled by default
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If holding Inverse contracts positions or orders, respective settlement assets will be enabled as collateral.
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If different leverage is used for existing long and short positions or orders in IM mode, the system will align the new leverage setting to the lower leverage after switching to CM mode.
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If existing long and short positions or orders are in different risk limit tier, the leverage will be adjusted based on the leverage corresponding to the higher risk limit tier after switching to CM mode
Switch from Isolated/Cross Margin to Portfolio Margin:
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Initial Margin rate must be ≤ 100% after switching.
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No orders or positions in Hedge mode.
After switching to Portfolio Margin mode successfully,
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Spot Margin trading is enabled by default
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If holding Inverse contracts, respective settlement assets will be enabled as collateral.
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