14. BitMEX Isolation Margin & Cross Margin Usage
There are two (Isolated Margin & Cross Margin) Margin Modes in BitMEX Margin Trading.
Learn about each margin mode and learn how to use it with examples.
What is ISOLATED MARGIN?
- Unlike the cross margin, the isolation margin evaporates only when the investment is forcibly liquidated, and the existing balance is in margin mode without any problems.
- This can limit the loss by risk taking only the invested funds. The advantage is that you can control the maximum loss by using a kind of money management method.
What is CROSS MARGIN?
- Cross-margin is a margin mode that utilizes the funds you have in addition to the position you entered to prevent forced liquidation.
- As another method of use, it can be used when you want to perform pyramiding (burning or riding water) in the position you entered previously.
- If you use this method, you can increase the gap between the price you entered and the forced liquidation. You can lower your chances of being liquidated, but if you do get liquidated nonetheless, all your balances will be evaporated!
So, let's learn more about it with the example below!
(1) ISOLATED MARGIN
- In the example below, Bitcoin was short-sold at $8156.5 using 100x leverage for $500.
- The margin mode used is the isolation margin mode, and the forced liquidation price is $8187. If it rises slightly upward, all bets will evaporate.
- The isolation margin can be managed by forcibly liquidating only the amount of bets, but if you trade with a large leverage, it can evaporate even with a slight swipe.
(격리마진으로 100배 레버리지 숏 포지션 진입!)
(8197불 달성 시 투자금 강제청산!)
Then I changed it to cross mode.
(2) CROSS MARGIN
- The moment you change from isolation margin to cross mode, the liquidation price has increased from $8187 to $9022.
- Instead, the entire balance I have in BitMEX was secured as collateral.
- If Bitcoin reaches its $9022 liquidation price, all of my balances may disappear together without a trace (don't over-leverage!).
(교차모드로 정정!)
(청산가격 9022불로 늘림!)
(강제청산 당하면 남은 잔액도 함께 증발!)
Cross Margin VS Isolation Margin
- The isolation margin can be limited by the funds invested in the loss.
- As for the isolation margin, the gap between the liquidation price and the entry price is relatively narrow.
- The isolation margin has a relatively high probability of being forced into liquidation when the market fluctuates.
- Cross-margin can hold any amount in the balance as collateral.
- Cross-margin can lower the probability of forced liquidation.
- Cross-margin allows you to maintain your position even when the market fluctuates if you are confident in the direction of your position.
I can't say for sure which margin mode to use, but it may depend on your trading style. If you are a trader who takes single hits with large leverage, it is good to use the isolation margin for risk management, and if you hold a position longer than a single hit with appropriate leverage with swing trading, you can use a cross margin. The most important thing is to trade with a valid strategy. Without a strategy, regardless of leverage or margin mode, you end up with bad results!
Next time, we will go further in margin mode to add margin,
We'll show you how to add margin to the position you've entered!
For more information on BitMEX margin trading and how to add margin, please click here~
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2021년 해외코인거래소 순위 및 추천 |
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거래량 |
11조(1위) |
3.5조 |
9.5조 |
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레버리지 |
최대100배 |
최대100배 |
최대125배 |
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수수료 |
- 지정가 : 0.02% - 시장가 : 0.04%(1위) |
- 지정가 : -0.025% - 시장가 : 0.075% |
- 지정가 : -0.025% - 시장가 : 0.075% |
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거래방법 |
현물+선물+마진 |
선물+주식+FOREX |
선물 |
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회원가입
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할인코드
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