Introduction to Margin Withdrawal Feature
Overview
In trading, the position's margin plays a crucial role. Margin includes the initial funds invested, additional funds added later, funding fees collected, and the unrealized PNL of the position. In some cases, you might want to withdraw part of the margin from your position for new trades or existing fund management.
1. Decreasing Margin
The feature of decreasing margin allows you to withdraw part of the margin from your position. In this way, you can free up funds for other trades without needing to close your existing position.
2. How to Decrease Margin
To decrease margin, you need to go to the position section and click the edit button on the margin. In the pop-up window, select "Decrease Margin", enter the amount you wish to reduce, and click "Confirm". Please note that the amount entered cannot exceed the maximum reducible amount. If the maximum reducible amount is 0, it means that margin reduction is currently not supported.
3. Changes Related to Margin Reduction
Margin: After reducing some margin, the margin in the position will decrease.
Actual Leverage: Leverage represents how much value of a position is leveraged with a certain margin. It is calculated as the position's mark value divided by the margin.
Estimated Liquidation Price: After reducing the margin, the remaining margin in the position decreases, which makes the liquidation price worse. For example, the liquidation price will increase for long positions and decrease for short positions.
Entry Price: Generally, reducing margin does not change the entry price. However, if the reduced amount is significant and involves unrealized profits, the position's entry price will be updated.
4. Maximum Reducible Amount and Maximum Addable Amount
Maximum Reducible Amount: This amount is first influenced by the maximum leverage of the current risk limit tier and also related to the proportion of profit that can be withdrawn. For instance, you open a long position with 10x leverage at a price of 100, and then reduce the margin when the price rises to 200. Assuming the risk limit's maximum leverage is 100x and the profit withdrawal ratio is 50%. Then the withdrawable amount = 100/10 - 200/100 + (200-100)*0.5 = 58 USDT.
Maximum Addable Amount: Related to the user's available balance. In theory, all available balance can be added to the position.
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