How to Adjust Contract Leverage?
Dexcore supports high leveraged transactions through the use of complex risk control engines and settlement models. By default, leverage is set to 50x. You may adjust the leverage to your preference. The higher the leverage, the lower value of the trader's position.
Important note: The following leverage limits will apply for users with registered Futures accounts of less than 3 days:
The new leverage limits will also apply to existing users with registered futures accounts of less than 3 days:
Users with open positions of less than 50x leverage will not be allowed to adjust their open positions beyond 50x leverage.
Users with open positions of more than 50x leverage may choose to maintain their position leverage but will not be allowed to increase their position leverage further. They will only be allowed to deleverage their open positions to 50x and below.
What is the Maintenance Margin?
The Maintenance Margin is a critical term used in trading, specifically in futures. It refers to the minimum amount of collateral that a trader must maintain in their account to keep their leveraged position open.
The Maintenance Margin is calculated based on the value of a trader's open positions at different notional value tiers.
Maintenance Margin = Notional Position Value * Maintenance Margin Rate - Maintenance Amount
The Maintenance Margin is calculated based on your positions at different notional value tiers. This means that the Maintenance Margin is always calculated in the same way, regardless of what leverage you select.
Moving from one tier to another will not cause the previous tier to change its leverage. The larger the position, the higher the Maintenance Margin rate.In most exchanges, the Maintenance Margin is usually half of the Initial Margin.
At Dexcore, however, the Maintenance Margin is only less than half of the Initial Margin, which is more beneficial to traders. It is important to note that the Maintenance Margin will directly affect the liquidation price. To avoid auto-deleveraging, it is highly recommended to close your positions before the collateral falls below the Maintenance Margin.
Maintenance Margin Rate
Maintenance margin calculations are done via a “Bracket” setup and are always calculated the same way, regardless of what leverage you choose. Moving from one bracket to another will not cause the earlier bracket to change its leverage. To avoid auto-liquidation, you should liquidate positions before the collateral falls below the Maintenance Margin.
Maxmimum size of margin on different leverage
1
500,000,000
500,000,000
2
75,000,000
150,000,000
3
22,222,222.22
66,666,666.67
4
7,500,000
30,000,000
5
4,000,000
20,000,000
8
1,250,000
10,000,000
10
800,000
8,000,000
20
125,000
2,500,000
25
12,800
320,000
40
5,000
200,000
50
3,200
160,000
80
78.125
6,250
100
50
5,000
125
3.2
400
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