In terms of derivatives, the margin refers to the amount required to buy and sell leveraged positions. For example, a margin of 10BTC is required to sell a contract valued 100BTC with 10x leverage.
The opening margin refers to the minimum amount needed to open a position; the maintenance margin refers to the minimum amount needed to keep the position from getting liquidated. If the margin of a position falls below the maintenance margin, the position will be liquidated.
There are 2 margin modes available in CoinBene‘s BTC contract: Cross Margin Mode and Fixed Margin Mode.
The cross margin, also known as "spread margin", is a margin method that utilizes the full amounts of funds in the available balance to avoid liquidations. Any other profitable positions can help increase the margins on losing positions.
This margin method is useful for users who are hedging existing positions and also for arbitragers. It can ensure that the position will not be liquidated due to a position under high risk.
The margin required when an investor opens a position will be used as the fixed margin for the contract's position.
When using the position-by-position margin model, the two-way position of each contract will calculate its margin and profit independently.