To trade futures in Binance JEX, you are required to hold a percentage of the contract value in order to keep the position open. This amount of value is known as position margin. If the position margin of a position drops below the required maintenance margin level due to fund fees incurred, or when unrealized loss is so high that the sum of position margin and unrealized loss falls below the required maintenance level, this position will be liquidated.
If a position is liquidated, the trader will lose all his/her position margin for this position. This means that the maximum loss incurred by a liquidation is the position margin. Binance JEX will not automatically transfer balance in your account to add position margin for you. Please transfer balance manually if you wish to add position margin. Alternatively, you may adjust the leverage used to reduce the possibility of the position being liquidated.
The higher leverage a trader uses, the less position margin he/she will need. However, higher leverage also means a higher possibility of the position being liquidated. On the contrary, lower leverage means more position margin needed and lower liquidation risks.
The leverage you use for a contract type will be saved and become the default leverage for positions of that type you open later. To adjust the leverage for a new position, please use the slider in Position-Leverage column.
Binance JEX uses fair mark price to calculate unrealized PNL and determine if a position will be liquidated. This helps to reduce the chances of positions being liquidated in times when the real-time price fluctuates violently and deviates from the fair mark price. Binance JEX suggests all traders to avoid using high leverage under such circumstances to mitigate the risk of liquidation.
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