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  • Introduction to perpetual contracts
  • Perpetual
    • Overview
      • Funding Rate
      • Mark Price
      • Index Price
      • Ladder balancing mechanism
      • Insurance fund
      • ADL
    • USDT margined perpetual contract
      • USDT Perpetual Contract Introduction
      • Leverage and position limit
      • Ladder Maintenance Margin Rate
      • Margin and profit/loss calculations
    • Coin margined perpetual contracts
      • Currency Standard Perpetual Contract
      • Leverage and position limit
      • Ladder Maintenance Margin Rate
      • Margin and profit/loss calculations
    • Functions
      • Perpetual contract user guide
      • One-way and two-way positions
      • Conditional Order
      • Take Profit, Stop Loss TP/SL
      • Take Profit Stop Loss Order
      • Contract Grid
      • Futures Copy
        • How to carry out a transaction
        • Profit Sharing
        • How to copy trade
        • Futures copy trading rules
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  1. Perpetual
  2. Coin margined perpetual contracts

Leverage and position limit

Risk limits are a risk management mechanism used to limit a trader's position risk. In a volatile trading environment, a single trader holding a large position with high leverage can result in significant losses. The system uses the concept of dynamic leverage, i.e. the maximum leverage available for trading will vary depending on the value of the position held by the trader: the greater the value of the position held, the lower the maximum leverage available. At the same time, the larger the leverage selected, the smaller the open position.

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Last updated 1 year ago

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