Margin Trading Terms
Cross margin: in cross margin mode, all currencies that support cross margin can be used as collateral to borrow funds. This can help improve the utilization rate of funds, while sharing risk among all currencies in the cross-margin account.
Isolated margin: trading pairs are kept in separate accounts so that funds and their corresponding risk are calculated independently.
Margin account: an account that is used for leveraged borrowing or trading. Margin accounts include cross-margin accounts and isolated-margin accounts. In isolated margin mode, each trading pair is kept in an independent account and savings and other operations are limited to the base currency and quote currency of that trading pair.
Leverage: the ratio between the total assets in the margin account and its margin. For example, if you have 100 USDT in a margin account and the maximum leverage is 10x, you can borrow up to 900 USDT.
Total assets: Sum of all assets = Net assets + Total liabilities.
Net assets: Total assets - Liabilities. This term also refers to the value of a remaining margin.
Total liabilities: Borrowed funds in the margin account + Interest.
Available assets: assets in the margin account that can be used to place orders, including transferred-in and borrowed assets.
Frozen assets: assets in the margin account that cannot be used to place orders. Generally, these are assets in open orders.
Interest: refers to interest incurred by borrowed funds, which is calculated as: Borrowed amount * Daily interest rate / 24 * Loan term (in the number of hours; any duration less than an hour will be calculated as an hour).
Auto-borrow: when enabled, available funds shown on the trading page will reflect an amount that includes the maximum borrowable amount. Auto-borrow will be triggered upon order placement and can be enabled or disabled manually.
Auto-repayment: once selected by the user when placing an order with leverage, all coins received from a successful transaction will be made available for auto-repayment.
Close position allows you to quickly repay margin loans. When the feature is used, the loan will be first repaid with coins (in the same currency as the loan) available in the margin account. If the coins available are insufficient to pay back the whole loan, other coins available will be sold at the market price for the required currency (coins with a larger balance will be sold first). When the feature is used for isolated margin orders, orders in the target trading pairs will be canceled, and the user will not be allowed to buy, sell, borrow, repay, or transfer the relevant coins. When the feature is used for cross margin orders, all cross margin orders will be canceled, and the user will not be allowed to buy, sell, borrow, repay, or transfer the relevant coins.
Margin level: (Total liabilities * Maintenance margin) / Net assets. When margin level ≥ 0.8, a margin call will be issued. When margin level ≥ 1, liquidation will be triggered.
Maintenance margin ratio: the minimum maintenance as a percentage required for cross-margin or isolated-margin trading pairs. The maintenance margin ratio for cross-margin trading is fixed at 10%. For the maintenance margin ratio of isolated margin trading pairs, please refer to https://www.bitget.com/en/spot/margininfo
Margin ratio: Net assets / Total liabilities.
Limit: the maximum borrowable amount for a currency. During actual operation, it can be the maximum borrowable based on maximum leverage or the limit, depending on which is smaller.
Isolated margin tier: a tiered leverage mode used for isolated margin trading to better manage risk. The system automatically adjusts the maximum leverage, initial margin ratio and maintenance margin ratio based on the user’s borrowed amount. The greater the amount of funds borrowed, the higher the tiered leverage level; the lower the maximum leverage level, the higher the margin ratio. For more information about tiered leverage, please refer to https://www.bitget.com/en/markets?tab=Spot
Liquidation: when margin level ≥ 1, a deleverage and forced liquidation process will be executed to sell assets in the margin account and repay the borrowed amount until margin level reaches ≤ 50%.