1. What is Margin?
In the virtual contract market, margin refers to the funds required to secure the fulfillment of a contract. It is a small portion of the total contract value, calculated based on the contract price, which traders need to deposit to participate in contract trading.
2. How is Margin Calculated?
1) Cross Margin Mode: In this mode, all available funds in the account are considered as margin for all positions.
In cross-margin mode: opening margin = par value * number of contracts * average opening price / leverage, holding margin = opening margin, which does not change with price.
2) Isolated Margin Mode: In this mode, margin is calculated individually for each position, and the profit and loss of one position do not affect others.
In isolated position mode: opening margin = par value * number of contracts * average opening price / leverage, holding margin = opening margin, which does not change with price.