In cross-margin mode, unrealized profits from open contract positions can be used to open new positions or to add to existing positions.
Changes following the launch of Adding to Positions with Unrealized Profits:
Use of Funds
Under the cross mode, the unrealized profits of open contracts will be added in real-time directly to the available balance of the contract account, and can also support actions that occupy funds such as opening positions and transfers while the position remains open.
This does not affect isolated-mode trading.
For example: When a user opens a long position on BTCUSDT at a price of 50,000 using a cross-margin mode, with a position size of 1 BTC, and spends all of their available balance, when the price reaches 60,000, the unrealized profit of the position is 10,000 USDT.
Therefore, before the addition of unrealized profits to the position, the user's available balance is 0, and they cannot do anything.
After the addition of unrealized profits to the position, the user's available balance becomes 10,000, and this amount can be used for operations such as opening new positions and transfers.
Liquidation
Under the cross mode, when a user holds multiple cross-margin positions, the unrealized PNL of multiple positions in the same settlement currency will hedge against each other. Liquidation is no longer triggered by the liquidation price but by the margin level (one margin level corresponding to a single settlement currency).
- Isolated-mode trading is not affected; it is still triggered by the liquidation price.
For example, under the cross mode, when a user holds two positions simultaneously, one in BTCUSDT and the other in ETHUSDT, and the BTCUSDT position has an unrealized profit of 15,000 while the ETHUSDT position has an unrealized loss of 10,000:
Before the implementation of adding unrealized profits to the position, BTCUSDT and ETHUSDT positions each have their own liquidation prices. If the ETHUSDT position continues to incur losses, then the ETHUSDT position will be liquidated, while the BTCUSDT position will not be affected.
After the implementation of adding unrealized profits to the position, the unrealized profits and losses of BTCUSDT and ETHUSDT positions will hedge against each other, with a total unrealized profit of 5,000. Therefore, even if the ETHUSDT position continues to incur losses, the risk of liquidation for the ETHUSDT position will be reduced due to the profit and loss hedging mechanism.
The positions in the same settlement currency will be liquidated based on the Margin Level {Margin Level = Position Equity / Maintenance Margin}. When the margin level reaches 100%, liquidation will be triggered, and both BTCUSDT and ETHUSDT positions will be liquidated simultaneously. This does not affect isolated margin positions.
-In cross mode, Position Equity = Contract Account Balance + Total Cross Unrealized PNL - Total Isolated Position Margin - Order Used
-In isolated mode, Position Equity = Position Margin + Unrealized PNL
Margin Level Impact
Use of unrealized profits
