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Explanation of Leverage Adjustment and Its Impact on Margin

CoinW 04-17 17:58 Coin Impact Category Others

This document explains how adjusting leverage in isolated and cross margin modes affects margin requirements in USDT-margined futures trading. It also provides step-by-step instructions for adjusting leverage on the CoinW app and web platform. 

 

Impact of Leverage Adjustment on Margin 

When you increase leverage, the system recalculates the required margin for your open positions or pending orders. 

1.If the new leverage requires less margin, the excess amount is automatically released. 

2.If additional margin is required, you must manually add funds. 

3.Leverage adjustments do not change position size but directly impact margin requirements and liquidation price. 

 

Margin Release Rules 

Margin Release Rules 

    1. When there is no Mega Coupons in isolated or cross margin mode: 
      a) Increasing leverage releases available margin. 
    2. When there is Mega Coupons in isolated or cross margin mode:
      a) For isolated pending orders: Available margin and Mega Coupons are released in the following order:  
          i.   USDT 
          ii.  Mega Coupons with a longer validity period 
          iii. Mega Coupons with a shorter validity period
      b)
      For isolated positions: Due to Mega Coupon rules, margin cannot be manually reduced.
      c)
      For cross pending orders and positions: Released margin is restored to the user's balance. 

Example: 

A position requires 20 USDT in margin, consisting of: 

  • 10 USDT from Mega Coupon A (valid for 10 days) 
  • 5 USDT from Mega Coupon B (valid for 1 day) 
  • 5 USDT in regular margin 

If leverage is increased, the system first releases 5 USDT. If further release is needed, it prioritizes Mega Coupon A before Mega Coupon B. 

Special Notes on Isolated vs. Cross Margin 

  • Cross Margin Mode: Released margin automatically returns to the contract account balance and can be used for other trades. 
  • Isolated Margin Mode: Released margin must be manually transferred to the contract account; otherwise, it remains in the isolated margin account. 

 

How to Adjust Leverage 

Web Platform: 

  1. Go to the futures trading page. 
  2. Select the desired trading pair. 
  3. Click on the leverage multiplier (e.g. "20x"). 
  4. Use the slider or enter a new value. 
  5. Click "Confirm" to apply the changes. 

 

 

 

How to Adjust Leverage on the App 

  1. Go to the futures trading page and select the trading pair. 
  2. Tap the current leverage value (e.g. "1x"). 
  3. Enter a new leverage value or use the slider to adjust it. 
  4. Confirm the change—future trades will use the updated leverage setting. 

 

 

2.How to adjust the leverage of an existing position: 
To adjust leverage on an open position, follow the same steps as placing a regular order. For the same trading pair and direction, select either “Increase Leverage” or “Decrease Leverage,” set your desired price and quantity, and confirm the order to apply the change.

 

Frequently Asked Questions 

  1. Is there a fee for adjusting leverage? 
    No, but margin requirements will change based on the new leverage. 
  2. Can released Mega Coupons still be used? 
    Yes, as long as it hasn’t expired. Expired Mega Coupons may be reclaimed by the system. 
  3. Why is USDT released first? 
    To reduce liquidity risks caused by expiring Mega Coupons, stable assets like USDT are prioritized. 

By adjusting leverage strategically, you can manage margin efficiently and control risk. For assistance, please contact CoinW customer support

Risk Warning: Leverage trading carries high risk and may result in the loss of your entire principal. Please trade cautiously. 

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