Adjusting Your Risk Limit
Users must manually raise and lower their risk limit. The risk limit button is on the right under the leverage slider.
Your current risk limit usage will be indicated. If you place an order that would bring your usage above your risk limit, you will be prompted to increase your risk limit, and then you can resubmit your order.
XBTUSD Risk Limit Calculation and Trade Example
At each step, the maintenance and initial margin are raised by the base maintenance margin. For example, with XBTUSD the base maintenance and initial margin are 0.35% and 1.00% respectively.
See the Risk Limits Page for up-to-date risk limits, which are unique per contract.
The calculation for the new maintenance margin becomes 0.35% + ( # of Steps * 0.35% ) and the new initial margin becomes 1.00% + ( # of Steps * 0.35% ). Hence we can create a table as such:
| Position Size | Maintenance Margin | Initial Margin |
|---|---|---|
| < 200 XBT | 0.35% | 1.00% |
| < 350 XBT | 0.70% | 1.35% |
| < 500 XBT | 1.05% | 1.70% |
| < 650 XBT | 1.40% | 2.05% |
Trade Example
A trader has a XBTUSD position worth 180 XBT. The current maintenance margin requirement is 0.35% (0.63 XBT), and current initial margin requirement for new orders is 1.00%.
The trader wishes to place a new order of 50 XBT on XBTUSD that would increase his position to 230 XBT. Because their account is now greater than 200 XBT, he is 1 step above the Base Risk Limit of 200 XBT. The trader thus increases their maintenance and initial margin to the next step (<350XBT) to 0.70% and 1.35%, respectively.