Profit margin by warehouse
= (fixed deposit+unrealized gains and losses)/opening deposit
= (fixed margin+unrealized gains and losses) * average opening price * leverage/(contract face value * number of positions)
Full warehouse profit rate
= account equity/(margin required for users to hold positions+pending order freezing margin)
10 times leverage, when the margin ratio is less than or equal to 10%, the short position line will be triggered; 20 times leverage, when the margin rate is less than or equal to 20%, it will trigger the short position line.
This means that if you open 10 times LTC contract, when your loss reaches 90% of the opening margin, it will trigger the opening line; If you open a contract with 20 times leverage, when your loss reaches 80% of the opening margin, it will trigger the opening line.
2. What is a short position?
Under the whole warehouse margin system, when the position held by the user changes reversely at the latest transaction price, the account equity of the user's contract account is 10 times that of the leveraged user, and the contract account equity is less than or equal to the margin of 10%, that is, the margin rate is less than or equal to10%; For users with 20 times leverage, the interest of the contract account is less than or equal to 20% of the margin, that is, the margin rate is less than or equal to 20%, which will lead to forced liquidation, commonly known as short position. After the forced liquidation is triggered, the system will first cancel all the unfinished orders of the user and release the margin, and then judge whether the margin rate of the user is still lower than 10%( 10 leverage) or 20%(20 leverage); If it is still less than 0, the system will entrust compulsory liquidation according to the transaction price when the account equity = 0.
Under the warehouse-by-warehouse margin system, when the position held by the user changes reversely at the latest transaction price, when the margin rate of the position held by the user is less than or equal to 10%( 10 times leverage) or 20%(20 times leverage), it will trigger forced liquidation, commonly known as position explosion. After the forced liquidation is triggered, the system will entrust the forced liquidation according to the liquidation price when the fixed margin of the position is completely lost. The final profit and loss settlement will be based on the customer's actual transaction results, and the customer's maximum loss will not exceed the total margin of the short seller.
Under the whole warehouse margin system, when short positions are triggered, all positions of all contracts will be forced to close. Under the warehouse-by-warehouse margin system, only the positions in the direction of the short-selling contract are forced to close.
When the user triggers a short position, the short position will be entrusted to the market according to the price of all the rights and interests lost by the user (which will be displayed as the transaction price of the user's short position list), and the transaction will be conducted according to the actual entrustment situation of the market. The final actual price may be different from the transaction price of the user's empty order. If the delegation fails to complete, it will be displayed in the unfinished order; If the delegation is completed, it will be transferred to the list of completed orders. Users can view the actual transaction of explosive warehouse receipts in the list of explosive warehouse receipts in the trading center. After the user explodes the position, the entrusted position will be separated from the user's account equity. If the position is not completely closed, the loss of the position will be recorded as the user's warehouse loss, and the user will not continue to lose money because of the position. If all positions are sold, there is a surplus, and the rest is transferred to the contract risk reserve.