Used margin will decrease when part or all of a spot position on margin is closed.
Used margin is calculated as the size or "Cost" (Avg Price x Open Volume) of an open spot position on margin divided by the level of leverage selected.
|Leverage Level||Used Margin|
|2x||1/2 of the position size|
|3x||1/3 of the position size|
|4x||1/4 of the position size|
|5x||1/5 of the position size|
For example, if you buy 0.5 BTC for 5,000 USD (the price is 10,000 USD per BTC):
- At 5X leverage, your used margin is 1,000 USD.
- At 4X leverage, your used margin is 1,250 USD.
- At 3X leverage, your used margin is 1,667 USD.
- At 2X leverage, your used margin is 2,500 USD.
However, if the position size is maximized based on the leverage selected, then a higher leverage would be more risky.
*Availability of margin trading services is subject to certain limitations and eligibility criteria.
The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.