Margin Withholding Updates

On September 27th, 2018 we made the following updates to our trading engine. These changes may affect the way you do margin trading.

Funds used in a margin position are now withheld.

  • This will prevent traders from converting their margin collateral into a non-collateral currency (which could cause a liquidation).
  • This will also prevent margin collateral from being converted into other collateral currencies.
  • Collateral withheld per position is approximately the cost of the position divided by the leverage used, and then adjusted by the current profit/loss of the position.

Calculations for available margin have been updated.

  • Profit/loss and open orders are now taken into account when placing a new order.
  • Margin orders can no longer be placed using margin that is also being used in a different margin order. Previously, these orders would fail upon being triggered. Now, the orders fail at creation.
  • Buy-side and sell-side margin withholdings are not withheld in the opposite direction, up to the point of the original order.
  • For example, if you have a 5 XBTUSD sell order that maxes out your margin, you can still place a 5 XBTUSD buy order (but not a 6 XBTUSD buy).

Withholdings are now based on current market price.

  • For example, if the price of XBTUSD is $6500, you cannot place an order to buy 5 XBTUSD @ $100 limit, 5:1 leverage, if you only have 100 USD in your account.