Traders are allowed to increase/decrease position margin under the mode of margin by position.
For USDT contracts, after increasing the position margin, the leverage of opening a position and the leverage of the order area will not be affected. The liquidation price will be recalculated based on the new position margin. Traders can preview the adjusted liquidation price before confirming the adjustment.
The following are 3 scenarios after manually increasing the position margin.
Situation 1
After increasing the margin, Trader A adjusts the leverage in the order area, and the position margin will be reset according to the new leverage requirements. The margin added before adjusting the leverage will return to zero.
Please note that traders can only lower their leverage when they have sufficient available margin, and increase their leverage if they will not be forced to liquidate immediately after the adjustment. Otherwise, the adjustment of leverage will not be accepted by the system.
Situation 2
After increasing the margin, add a new position in the same trading direction, and the increased margin will be used for the entire position.
For example:
- The trader has a long position of 1BTC, the liquidation price is 9,500 USDT, and the entry price is 10,000USDT.
- The trader increased the position margin of 1000USDT, and the liquidation price was reduced to 8500USDT.
- The trader added a new long position of 1BTC at the price of 10,000USDT. Now, the total size of the position is 2BTC.
- The newly added 1000USDT margin is used together with these 2BTC positions. The liquidation price therefore rose to the price of 9000USDT.
Situation 3
After increasing the position margin, if the position is partially closed, the newly added margin will be reduced correspondingly according to the proportion of the position closed. The liquidation price remains unchanged after partial liquidation.
For example:
- The trader has a long position of 1BTC, the liquidation price is 9,500 USDT, and the entry price is 10,000USDT.
- The trader increased the position margin of 1000USDT, and the liquidation price was reduced to 8500USDT.
- 50% of the position (0.5BTC) is partially closed, leaving 0.5BTC position. The added margin will also be reduced to 500 USDT (50%). The liquidation price remained at 8,500 USDT.
Go to Bybit’s Official Website
Please check Bybit official website or contact the customer support with regard to the latest information and more accurate details.
Bybit official website is here.
Please click "Introduction of Bybit", if you want to know the details and the company information of Bybit.
(Forex Broker)
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...