Bibox now supports margin trading in the form of cross margin and fixed margin. The following lists the distinction between these two.
Structure Design
Contrast | Fixed Margin | Cross Margin |
Leverage | 1、Maximum 10X 2、Leverage adjustment supported |
1、Maximum 5X 2、Leverage adjustment unsupported |
Margin | Trading token and pricing token | All token in the account |
Maintenance Risk Rate | Gradient maintenance margin rate, as low as 106% | Fixed at 110% |
Market Supported | Only support USDT market | Support USDT, BTC and ETH market |
Borrow cap | Maximum 9 times the capital | Maximum 4 times the capital |
Borrow limit | Lower leverage, higher limit | Fixed limit |
Borrow interest | Hourly interest | Hourly interest |
Actual Trading
Margin Type
Fixed Margin: only support the trading token and pricing token as the margin.
Cross Margin:support all tokens as the margin to avoid being forced to trade for other tokens.
Risk Rate calculation
Fixed Margin:Each trading pair can be seen as a single position, and the risk rate is calculated independently based on the total assets and total borrowing amount of that trading pair, independent from other trading pairs.
Cross Margin:The cross margin account can be taken as a position, and the risk rate is calculated according to the total assets and the total amount borrowed in the account. There will only be one risk rate.
Liquidation price
Fixed Margin: Estimated liquidation price = (The borrowed pricing token*liquidation risk rate-current amount of pricing token)/(current amount of trading token-the amount of borrowed token* liquidation risk rate)
Cross Margin: There is only a risk rate, no liquidation price because multiple tokens can be taken as margin.
Borrowing Rules
Fixed Margin: only support borrowing current trading token and pricing token.
Cross Margin: support borrowing all tokens in cross margin account.
You can choose different leverage designs according to your preference in actual trading. Please refer to “Margin Trading Rules – Fixed Margin” and“Margin Trading Rules- Cross Margin” for more details.
Comments
0 comments
Article is closed for comments.