[Notice] Huobi Coin-Margined Swaps Now Support Locked Margin Optimization Function

Dear valued users:

After the successful launch of locked margin optimization function for futures trading, Huobi Futures will support this function for coin-margined swaps trading at 16:00 on Oct. 15, 2020 (GMT+8). With this function, users could reduce position margin and improve fund utilization.

When a user holds both long and short positions, the optimization ratio for locked margin is 100%. The formulas to calculate locked margin are as below:

Long position margin for a single asset = long position quantity (cont) of a single asset* contract face value / contract latest price / leverages
Short position margin for a single asset= short position quantity (cont) of a single asset * contract face value / contract latest price / leverages
Locked margin for a single asset = min (Long position margin for a single asset, Short position margin for a single asset)
New position margin for a single asset = Long position margin for a single asset + Short position margin for a single asset - Optimization ratio for this asset * Locked margin for a single asset

Example: Tom holds a long position of 1000 conts BTC/USD Swaps and a short position of 800 conts of BTC/USD Swaps both in 20x leverage. The face value of each contract is 100 USD. Assume the latest price of BTC/SUD Swaps is 9500 USD, the new position margin of Tom is calculated as following:

Long/Short position margin for BTC swaps =100 * 1000 / 9500 / 20 + 100 * 800 / 9500 / 20=0.9473 BTC

Locked margin for BTC swaps = min (100 * 1000 / 9500 / 20, 100 * 800 / 9500 / 20) = 0.4210 BTC

New position margin for BTC swaps=0.9473 - 0.4210 *100% = 0.5263 BTC

Compared with the original margin of 0.9473 BTC, the new position margin reduces 0.4210 BTC, which greatly improved the fund utilization of users with both long and short positions.

Thank you for your support to Huobi Futures!

Huobi Futures

Oct. 14, 2020

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