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MCS | The Industry's Lowest MMR for BTCUSDT Perpetual Contract

3 days ago

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Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.

The Maintenance Margin Rate (MMR) for BTCUSDT perpetual contracts on MCS has been lowered from 0.5% to 0.35%. For more details, please refer to the following.

MCS BTCUSDT Perpetual Contract MMR Adjustment

🔷 Adjustment applied to: BTCUSDT Perpetual Contract
🔷 Before the Adjustment: 0.5%
🔷 After the Adjustment: 0.35%
🔷  Effective Date: As of November 20, 2020 @ 04:00

❗️Please Note

1️⃣   The new maintenance margin rate is applied to the positions created after the effective date. Positions created before the effective date will keep the previous MMR of 0.5%.

❓ FAQ

Q1. What is the Maintenance Margin Rate (MMR)?

A1. A position's maintenance margin is the minimum margin required to hold a position. When the margin of the position reaches the maintenance margin, liquidation occurs.

Q2. What changes when the MMR is lowered?

When the maintenance margin rate decreases, the margin required to hold the position also decreases. The liquidation price is calculated based on the position's margin and the maintenance margin ratio (MMR), so when the maintenance margin ratio (MMR) is lowered, it has the effect of further distancing the liquidation price of a position from the position entry price. This adds an advantage to MCS traders.

Q3. Please compare the new maintenance margin rate on MCS with the ones on major exchanges.

The 0.35% maintenance margin rate (MMR) applied to MCS is the lowest maintenance margin rate (MMR) in the derivatives exchange industry.

Q4. How is the lowered maintenance margin rate better for me? Please elaborate.

A4. Trader A entered a long position of 20,000 contracts with 100x leverage using 0.01 BTC at a price of $20,000 BTC. Here are the maintenance margins and liquidation prices based on the previous and the new maintenance margin rate (MMR):

Case 1: Maintenance Margin Rate (MMR) 0.5%

When the maintenance margin ratio (MMR) is 0.5%, the maintenance margin for this position is 0.005 BTC*, and the liquidation price is $19,900.49**.

* Maintenance Margin = Position Quantity / Order Price * Maintenance Margin Rate
0.005 = 20,000 / 20,000 * 0.005
** Liquidation Price = (Order Price * Leverage) / [Leverage +1 - (Maintenance Margin * Leverage)]
19,900.49 = (20,0000 * 100) / [100 + 1 - (0.005 * 100)]


Case 2: Maintenance Margin Rate (MMR) 0.35%

When the maintenance margin ratio (MMR) is 0.35%, the maintenance margin for this position is 0.0035 BTC*, and the liquidation price for this position is $19,870.83**.

* Maintenance Margin = Position Quantity / Order Price * Maintenance Margin Rate
0.0035 = 20,000 / 20,000 * 0.0035
** Liquidation Price = (Order Price * Leverage) / [Leverage +1 - (Maintenance Margin * Leverage)]
19,870.83 = (20,0000 * 100) / [100 + 1 - (0.0035 * 100)]

It is very apparent that a position can have a better maintenance margin and a liquidation price when the maintenance margin rate is lowered.

For inquiries related to the new Maintenance Margin Rate, please contact us through Live Chat or Telegram.

Traders ALWAYS come first on MCS.

Thank You.

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Published 3 days ago