Margin tiers

Margin tiers raise the maintenance margin as a position grows, so maximum leverage falls as size rises and the two stop being separate decisions. Module 5; tiers on Mochatrade.

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In the help centreLearn what a perpetual contract is on Mochatrade
  • Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…
  • Auto-deleveraging (ADL)Auto-deleveraging is the last step when a liquidated position's loss exceeds its margin and the insurance pool: the…
  • Cross marginCross margin uses your whole balance as margin for every open position, so a winner props up a loser and liquidation…
  • Isolated marginIsolated margin ties a fixed amount of margin to one position, so that position can only lose what you gave it and the…
  • Margin requirementA margin requirement is the minimum collateral for a position as a percent of its value: 10% is the same as 10x…
  • Position sizingPosition sizing is deciding how much to trade: the rupees you are willing to lose divided by the distance from entry…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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