15. Add/Remove BitMEX Margin

 

Last time, we learned about intersection and isolation margin mode~

 

This time, let's learn how to add/remove margin on the BitMEX Futures Exchange!

 

We'll give you an explanation of each function and an example!

(1) Add margin

 

- Adding margin means adding margin to your position.

 

- You can increase the liquidation price generously by adding margin, and you can further increase the size of your position.

 

- If you increase the liquidation price by increasing the size of the position, you can lower the probability of being forced to liquidate.

 

- And if you are confident in the direction you bet, if you defend the liquidation and actually move in that direction, you can get a bigger profit than the existing position.

 

- Also, maintaining the size of the existing position but increasing the margin is deleveraging.

 

- Deleveraging refers to reducing existing leverage. This can reduce the volatility you are exposed to.

 

 

(2) Margin removal

 

 

- Conversely, removing margin means reducing the margin of the position you entered.

 

- As a result, the gap between the liquidation price and the entry price may narrow.

 

- If the gap between the liquidation price and the entry price narrows, the probability of forced liquidation increases relatively.

 

- If you entered a position with an isolation margin for money management, but later determine that more margin than expected, you can use it as a function to reduce the margin.

 

- Please note that reducing the margin after entering a position using leverage has the same effect as using a larger leverage!

 

 

 

Then I'll show you an example of adding/my owning a margin!

 

《Add Margin》

 

- Below is an image of entering a short buy position for 10,000 contracts! You can see that the entry price is very close to the exit price by using too much leverage!

 

- I will use the balance I already have to add margin. This can increase the liquidation price!

 

 

 

 

 

To add margin, click the purple circle 'margin' above.

 

A pop-up will appear saying 'Add/Remove Position Margin'!

 

Here you can click 'Add Margin' and add as much as you like!

 

 

 

 

Below you can see how we increased our liquidation price by adding margin!

 

This has lowered the chances of being forced into liquidation!

 

 

 

《Margin Removal》

 

 

 

Conversely, the method of removing a margin is the same as the method of adding a margin, but

 

After clicking 'Remove Margin' instead of 'Add Margin' in the 'Add/Remove Position Margin' pop-up,

 

You can reduce your margin (margin) as much as you want!

 

 

 

 

If you remove the margin like this, you will see that it is back to the original liquidation price!

 

 

 

 

 

Margin additions and removals can be simply understood as tools to control the liquidation price!

 

It is also a means of further leverage or deleveraging;

 

It can also be used for pyramiding (burning or water riding).

 

It can be used in several ways, which may depend on your investment strategy!

 

Next time, we will check the exact rate of return on the BitMEX Futures Exchange.

We'll explain how to calculate it!

Click here to learn how to calculate revenue!