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.