The gradient maintenance margin rate system refers to the minimum margin rate required by users to maintain their current positions. When the margin rate is less than or equal to the user’s current maintenance margin rate+closing procedure rate, it triggers a liquidation.
Position by position: Margin ratio=(fixed margin+unrealized profit and loss)/Position value, Position value=face value/latest marked price
Full position: Margin ratio=(balance+realized profit and loss+unrealized profit and loss)/(position value+leverage ratio of frozen margin), position value=face value * number of sheets/latest marked price
In order to prevent market liquidity from being impacted and resulting in significant short selling losses when large positions are sold out, Euroeasy implements a tiered maintenance margin ratio system. That is, the larger the user’s position, the higher the margin ratio maintained, and the lower the maximum leverage ratio that the user can choose.