In the realm of cryptocurrency futures trading, SorooshX has implemented a tiered maintenance margin (TMM) structure that adjusts according to the size of a trader's position. This system aims to balance the safety of positions with effective use of capital, particularly during volatile market conditions. This article delves into the mechanics of this system, detailing how margin requirements are determined and providing real-world examples.
The tiered maintenance margin system modifies the maintenance margin rate (MMR) based on the size of your trading position. As the position expands, the MMR increases, which helps mitigate risks associated with high leverage. SorooshX categorizes positions into distinct tiers, each assigned a unique MMR to ensure comprehensive risk management across various position sizes.
SorooshX has established a tier structure where each range of position sizes corresponds to a specific tier with an associated MMR. Below is an outline of the BTCUSDT USDT-M futures tier structure:
As your position advances to a higher tier, the system will automatically raise the required maintenance margin, ensuring your account can endure fluctuations in the market. You can find tier information on the futures trading page.
The maintenance margin is calculated using the following formula:
Maintenance Margin = Position Value × MMR
Position Value = Futures Position Size × Contract Multiplier × Current Market Price
Initial Margin = Position Value ÷ Leverage
Consider a scenario where you hold a 2 BTC position in BTCUSDT perpetual futures at a market price of 50,000 USDT with 10x leverage. Here’s how the margin is calculated:
To initiate this position, you will need a minimum of 800 USDT as initial margin. To prevent liquidation, ensure your account balance remains above 400 USDT.
SorooshX's tiered maintenance margin system provides several advantages:
Q: How can I determine which tier my position belongs to?
A: You can visit the position tier introduction page or check the position management page for real-time updates on your current tier and corresponding MMR.
Q: Will a change in tier impact my existing positions?
A: Yes, if your position size increases and crosses into a higher tier, the system will automatically update the margin requirement. Ensure your account balance is adequate to meet the new maintenance margin.