Understanding Quick Margin Trading Positions
When assets are transferred into an isolated margin position, they're displayed as collateral but not as an open position. A position is officially opened once the trader incurs liabilities through manual or auto borrowing.
Position Components Explained
| Term | Definition |
|---|---|
| Base Assets | Total base cryptocurrency in position (transferred + borrowed + bought) |
| Quote Assets | Total quote cryptocurrency in position (transferred + borrowed + bought) |
| Base Liability | Outstanding base crypto borrowed plus accrued unpaid interest |
| Quote Liability | Outstanding quote crypto borrowed plus accrued unpaid interest |
| Margin Level | Ratio of net assets to (maintenance margin + fees) - displayed only for open positions |
| Est. Liq. Price | Calculated price where position would face liquidation |
| PnL | Profit/Loss calculated in quote crypto unit |
| PnL% | Percentage profit/loss relative to transferred crypto value |
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Borrowing Mechanics in Quick Margin Trading
Users can borrow crypto through two methods:
- Manual borrowing
- Auto-borrow orders
The maximum borrow amount is determined by:
- Collateral deposited in the isolated position
- Position tiers for isolated margin positions
Both base and quote cryptocurrencies can be borrowed, providing flexibility in trading strategies.
Order Placement and Validation
Quick margin trading offers three order placement modes:
| Mode | Description | Validation Criteria |
|---|---|---|
| Manual | Similar to spot trading - uses pre-borrowed funds | Order ≤ Position assets - open order amounts |
| Auto Borrow | Borrows upon order fulfillment | Order ≤ Position assets - open orders + available to borrow |
| Auto Repay | Attempts repayment upon order fulfillment | Order ≤ Position assets - open orders |
Risk Management Parameters
Maintenance Margin Requirements
Based on the higher tier between your base and quote borrowings. Higher tiers indicate greater position sizes and correspondingly higher requirements.
Order Cancellation Protocol
The system automatically cancels orders when:
- Net assets < (Maintenance margin + initial margin for open auto borrow orders)
- This preventive measure helps avoid imminent liquidation
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Liquidation Process Explained
Warning Signals
- System alerts at 300% margin level (default, subject to change)
- Liquidation triggers at ≤100% margin level
Liquidation Types
Partial Liquidation:
- For positions at tier 2+
- Progressively reduces borrowings tier-by-tier
- Example calculation: Liquidated amount = Current borrow - next tier's max borrow
Full Liquidation occurs when:
- Position is at tier 1 with ≤100% margin
- Position at tier 2+ but ≤100% at lowest tier requirements
FAQ Section
What's the difference between base and quote assets?
Base assets refer to the primary cryptocurrency in a trading pair (like BTC in BTC/USDT), while quote assets represent the secondary currency used for valuation.
How is the liquidation price calculated?
The estimated liquidation price factors in your liabilities, assets, and maintenance margin requirements to determine when your position would be at risk.
Can I change my order mode after placement?
No, order modes (Manual/Auto Borrow/Auto Repay) must be selected when placing the order and cannot be modified afterwards.
What happens to open orders during liquidation?
All open orders in the position are automatically canceled before the liquidation process begins.
How often are margin levels updated?
Margin levels are calculated in real-time based on current market prices and position balances.
Why would my auto borrow orders get canceled?
This occurs when your net assets fall below the required threshold, serving as a protective measure against excessive risk.