Margin Rules

Margin is the amount of funds required to open and maintain a leveraged position.

On 6MM, margin is calculated in stablecoins and applies to U-margined perpetual contracts.

Understanding margin rules helps users manage risk and avoid unexpected liquidations.


Types of Margin

6MM uses two primary margin types:

Initial Margin

  • The minimum amount required to open a position

  • Depends on position size and selected leverage

  • Locked when the order is executed

Maintenance Margin

  • The minimum margin required to keep a position open

  • Lower than initial margin

  • If your margin balance falls below this level, liquidation may occur


Available Margin

Available margin is the portion of your 合约账户 balance that can still be used.

It is affected by:

  • Open positions

  • Unrealized PnL

  • Trading fees

  • Funding payments

Only available margin can be used to open new positions or increase position size.


Margin Ratio

The margin ratio is a key risk indicator.

  • It compares required margin to your account equity

  • As the margin ratio increases, liquidation risk increases

  • Real-time updates reflect market movements

Keeping the margin ratio at a safe level is essential for position stability.


Cross vs. Isolated Margin

Depending on partner configuration, 6MM may support:

Isolated Margin

  • Margin is assigned to a single position

  • Losses are limited to the margin allocated to that position

Cross Margin

  • All available margin in the 合约账户 is shared across positions

  • Helps reduce liquidation risk but exposes the entire balance

Margin mode availability depends on the trading pair and partner setup.


Margin and Mark Price

Margin calculations on 6MM use the mark price instead of the last traded price.

This helps:

  • Prevent unnecessary liquidations

  • Reduce the impact of short-term price manipulation


What Happens When Margin Is Insufficient?

If your margin balance falls below the maintenance requirement:

  1. The system issues risk warnings (if supported)

  2. Partial position reduction may occur

  3. Full liquidation is triggered if risk continues to increase

Liquidation prices are calculated using the mark price.


Margin Best Practices (For Beginners)

  • Always keep extra margin available

  • Avoid using maximum leverage

  • Monitor unrealized PnL and margin ratio

  • Add margin early during adverse price movement


Summary

Margin rules on 6MM are designed to:

  • Protect users from excessive losses

  • Maintain market stability

  • Provide transparent, real-time risk indicators

Understanding and following margin rules is essential for safe perpetual contract trading.

Last updated