BitForex Perpetual Contract uses the Cross Margin/Spread Margin model. Traders only need to pay a margin according to the BTC value of the order to conduct a perpetual contract transaction.
Cross Margin utilizes the full amount of funds in the Available Balance (referring to the available balance of the BitForex Perpetual Contract Account) to avoid liquidations. Any realized PNL (profit and loss) from other positions can aid in adding margin on a losing position.
When the Available Balance ≤ maintenance margin, the position will be liquidated.
Margin can be divided into: 1. Initial Margin 2. Maintenance Margin
What is Initial Margin?
Initial Margin is the amount of collateral required to open a position.
Currently BitForex only provides the cross margin model — In this mode the initial margin is fixed at 1%.
Initial Margin = 1% * order value
What is Maintenance Margin?
Maintenance Margin is the minimum amount to keep a position open.
The maintenance margin rate of BitForex perpetual contracts is fixed at 0.5%
Maintenance Margin = 0.5% * position value