The full position mode is Bybit’s default margin mode. The automatic margin call is only valid in the case -by- money mode, which means that your position margin is separate from your account balance. Bybit will not automatically withdraw your available balance as an additional margin. That is to say, in this mode, if you are forced to liquidate the position, the maximum loss limit is the initial margin of the position.

The position-by-position mode is very useful for speculative positions. Separate the margin, when the market tends to be in an unfavorable trading direction, users can better control risk by limiting the maximum loss of the position.

An automatic margin call is a function that allows traders to automatically add margin to the part that has been held for the purpose of avoiding liquidation. Once the automatic margin call function is enabled, whenever your margin level is about to reach the maintenance margin level, Bybit will use your available balance to fill the margin. The added amount is equal to the initial margin of your current position. If the available balance is insufficient, Bybit will use all the remaining balance to fill the margin of the position. When the margin is added, you can see that the liquidation price is farther away from the marked price.

To turn on/off automatic margin call, users can turn on or off the “automatic margin call” mode in the “position” area.

When the automatic margin call is opened, the minimum leverage that can be used for the position is 1 time. When a position is already using 1x leverage, even if there is an available balance, the margin will not be added.

Example: automatic margin call process

A trader has an available balance of 10,000 USDT. The current BTC price is 8,000 USDT. He opened a long position of 5 BTCUSDT with a leverage of 10 times, and the initial margin used was 4000 USDT. The maintenance margin rate is 0.5%, and the liquidation price is calculated to be 7,240 USDT. The remaining available balance is 6000 USDT.

When the mark price drops to 7,240 USDT, that is, the liquidation price is reached, the automatic margin call will start the process and prevent the position from being liquidated. It will use the available balance to fill the margin to 4000 USDT, leaving 2000 USDT in the available balance. And now the new liquidation price is 6,440 USDT, and the starting margin for this position is now 8,000 USDT.

If the price of BTCUSDT continues to fall and reaches the new liquidation price of 6,440 USDT, the automatic margin call will take effect again, but this time only the remaining 2000 USDT in the available balance can be filled into the position. The new liquidation price is now 6,040 USDT.

However, if there is no available balance in the account and the price reaches 6,040 USDT, the position will eventually be liquidated, because the automatic margin call cannot take effect, preventing the position from being liquidated.

When the liquidation is triggered, the system will first cancel all unexecuted activity orders, clear more available margin, and then use it to avoid liquidation.

Please note that the above calculation does not include any transaction fees.

Unlike the full position mode, all the user’s available balance will be used to calculate the liquidation price. When the automatic margin call is triggered, traders will be notified and have the opportunity to better manage their positions.

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