Welcome to MCS, the world-class derivatives trading platform where traders ALWAYS come first.
In this article, we would like to introduce different types of fees.
In order to start a new trade, traders should hold the minimum amount of margin, which is called 'initial margin'. In other words, the initial margin is the collateral needed for a trader to open a position.
Traders can calculate the initial margin by multiplying the initial margin rate by the order price. The default initial margin rate is 1% and changes depending on the leverage and risk limit used.
Let's say the trader has started a position. Now, let's say the trader has started a position. To keep the position, he/she needs another type of margin, called 'maintenance margin'.
Maintenance Margin is the minimum margin required to maintain a position. MCS sets a default maintenance margin rate of 0.5% for BTC/USDT perpetual contracts and changes depending on the risk limit. This maintenance margin is related to the liquidation price. When the position's margin reaches the maintenance margin, it is liquidated.
We hope you to trade by understanding the types and roles of margins.
MCS will consider traders at the first.
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