How Does Margining Work?
Margin Modes
GX Exchange supports two margin modes for perpetual futures trading:
Cross-Margin
Your entire account balance is used as collateral for all open positions.
- Advantage: Lower liquidation risk because all available balance supports your positions
- Disadvantage: A losing position can consume your entire account balance
- Best for: Experienced traders managing multiple correlated positions
Isolated-Margin
Each position has its own dedicated margin, separate from other positions.
- Advantage: Maximum loss on any single position is limited to its allocated margin
- Disadvantage: Higher liquidation risk per position (less collateral supporting it)
- Best for: Traders who want strict per-position risk management
Key Margin Concepts
| Term | Definition |
|---|---|
| Initial Margin | Minimum collateral required to open a position. For 10x leverage, initial margin = 10% of position value. |
| Maintenance Margin | Minimum collateral required to keep a position open. Typically 50% of initial margin. |
| Available Margin | Your free collateral that can be used to open new positions. |
| Margin Ratio | Maintenance margin / account equity. Liquidation occurs when this reaches 100%. |
Example
- Account balance: 10,000 USDC
- Open a $50,000 BTC-USD long at 5x leverage
- Initial margin required: $50,000 / 5 = 10,000 USDC
- Maintenance margin: ~5,000 USDC (varies by market)
- If unrealized loss exceeds ~5,000 USDC, the position is liquidated
How to check your margin
Your current margin ratio, available margin, and position details are displayed on the Trading page. The margin bar turns yellow (warning) and red (danger) as you approach the liquidation threshold.