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1. What is Maintenance Margin?
Maintenance Margin is the minimum amount of margin required to maintain an open position.
If the account margin falls below the maintenance margin requirement, the system may trigger liquidation to prevent further losses.
2. What is Risk Limit?
Risk Limit is a risk control mechanism set by the platform based on different position sizes.
Larger positions usually require higher margin ratios to help reduce the risks associated with large positions.
If a position exceeds the current risk limit tier, the system may restrict opening additional positions or require additional margin.
3. Why was my position liquidated?
When the account margin is insufficient to maintain the current position, the system may trigger liquidation.
Common reasons for liquidation include:
4. How can I reduce liquidation risk?
You can reduce liquidation risk by:
5. What is Auto Add Margin?
Auto Add Margin is a risk control feature.
When enabled, the system will automatically transfer funds from your available Futures Account balance to the current position when it approaches liquidation, helping reduce liquidation risk.
6. Why does the liquidation price change after adding margin?
After adding margin, the position margin increases, allowing the position to withstand larger price fluctuations.
This usually moves the liquidation price farther away from the current market price, helping reduce liquidation risk.
7. Does higher leverage mean higher risk?
Yes.
The higher the leverage, the greater the impact even small market price movements may have on your position PnL, which generally results in higher liquidation risk.
8. What’s the difference between Cross Margin and Isolated Margin?
Cross Margin uses more of the account’s available balance to share risk across positions, so positions are generally more resistant to market fluctuations.
Isolated Margin only uses the margin assigned to the current position. When margin becomes insufficient, the position may be more likely to be liquidated. However, the risk is usually limited to the margin allocated to that position and does not affect other available assets in the account.
You can choose based on your trading habits and risk preferences.
9. What is Margin Ratio?
Margin Ratio is an important indicator used to measure the risk level of a position and determine whether the account is approaching liquidation.
If the margin ratio continues to fall below the maintenance margin requirement, the system may trigger liquidation.
Margin Ratio is affected by factors such as position PnL, leverage, margin amount, and market volatility.
10. Why does increasing leverage reduce my maximum position size?
This is usually related to the platform’s risk limit mechanism.
The platform sets different risk limits and margin requirements based on position size. Under certain high-leverage tiers, the maximum allowable position value may be lower, which can result in a smaller maximum position size.
In addition, risk limits and maximum leverage rules may vary across different contract products. Please refer to the trading page for the actual rules.
11. What happens to the remaining funds after liquidation?
After liquidation is completed, any remaining funds will usually be retained in your Futures Account.
You can review your fund records or account balance for the actual settlement details.
Please note that liquidation-related fees may be incurred during the liquidation process, so the remaining amount may differ from your expectations.
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