Leverage-Position Limit
There is a strong relationship between leverage, position limit, and maintenance margin rate!
Why is there a position limit?
A position limit is a risk management used to limit a trader's position risk.
Traders holding a large position with high leverage are at greater risk, not only more likely to lose their assets but also bring greater losses to the system, so different position limits should be set for different positions.
As shown in the table below: 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.
Parameter list
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