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Distinction Between Cross Margin And Fixed Margin
2020-11-21 06:21

Bibox now supports margin trading in the form of cross margin and fixed margin. The following lists the distinction between these two.


Structure Design


Contrast Fixed Margin Cross Margin
Leverage 1、Maximum 10X
2、Leverage adjustment supported
1、Maximum 5X
2、Leverage adjustment unsupported
Margin Trading token and pricing token All token in the account
Maintenance Risk Rate Gradient maintenance margin rate, as low as 106% Fixed at 110%
Market Supported Only support USDT market Support USDT, BTC and ETH market
Borrow cap Maximum 9 times the capital Maximum 4 times the capital
Borrow limit Lower leverage, higher limit Fixed limit
Borrow interest Hourly interest Hourly interest


Actual Trading


Margin Type

Fixed Margin: only support the trading token and pricing token as the margin.

Cross Margin:support all tokens as the margin to avoid being forced to trade for other tokens.


Risk Rate calculation

Fixed Margin:Each trading pair can be seen as a single position, and the risk rate is calculated independently based on the total assets and total borrowing amount of that trading pair, independent from other trading pairs.

Cross Margin:The cross margin account can be taken as a position, and the risk rate is calculated according to the total assets and the total amount borrowed in the account. There will only be one risk rate.


Liquidation price

Fixed Margin: Estimated liquidation price = (The borrowed pricing token*liquidation risk rate-current amount of pricing token)/(current amount of trading token-the amount of borrowed token* liquidation risk rate)

Cross Margin: There is only a risk rate, no liquidation price because multiple tokens can be taken as margin.


Borrowing Rules

Fixed Margin: only support borrowing current trading token and pricing token.

Cross Margin: support borrowing all tokens in cross margin account.


You can choose different leverage designs according to your preference in actual trading. Please refer to “Margin Trading Rules – Fixed Margin” and“Margin Trading Rules- Cross Margin” for more details.

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