Announcement on the Launch of Cross Margin Mode for USDT-margined Swaps

Dear valued user,

To improve asset utilization for our users, Huobi Futures will launch cross margin mode for USDT-margined swaps on WEB and API at 18:00 on December 11, 2020 (GMT+8).

Cross margin mode: all swaps under the cross margin mode share the USDT in the cross margin account as the margin, which indicates that all positions under the cross margin mode share the same account equity; moreover, their PnL, occupied margin and margin ratio are calculated jointly;

Isolated margin mode: the account equity for each swaps is calculated separately, and the position margin and PnL of each swaps will not affect each other.

In Huobi USDT-margined swaps trading, users could trade a swaps by using the cross margin mode and the isolated margin mode at the same time. Users could switch for a cross or isolated margin mode without current positions being affected. For example: users can hold BTC/USDT swaps in cross margin mode and BTC/USDT swaps in isolated margin mode at same time.

Currently, cross margin mode of USDT-margined swaps is available for BTC/USDT, ETH/USDT, LINK/USDT, LTC/USDT, and XRP/USDT swaps, and we will add more trading pairs in the near future, please stay tuned.

 

The formula for calculating the position margin under the cross margin mode are as following:

  • Long position margin of a single swaps = long position quantity of the swaps * face value * latest price / leverage
  • Short position margin of a single swaps = short position quantity of the swaps* face value * latest price / leverage
  • Locked margin of a single swaps = min (Long position margin of the swaps, Short position margin of the swaps)
  • Position margin of a single swaps = Long position margin of the swaps + Short position margin of the swaps
  • New position margin of a single swaps = Position margin of the swaps - Locked margin of the swaps * Optimization ratio of the locked margin
  • The optimization ratio of locked margin is 100%
  • New position margin (account) = Σ New position margin of cross margin account

Note: Currently, USDT-margined swaps trading in cross margin mode is only available on WEB and API. Viewing assets and positions, as well as opening and closing positions are not available on APP yet.

 

For more details, please refer to >>>

Introduction on USDT-margined Swaps

Trading Tutorial of USDT-margined Swaps

 

Huobi Futures

Dec. 10, 2020