1) Why is my TP/SL order getting automatically canceled or reduced in amount?
When the total amount of your TP/SL order exceeds your position size, the system will automatically reduce the order amount based on the price. If the TP/SL order amount becomes 0, the order will be automatically canceled until the TP/SL order amount matches the position size.
Example:
User A holds 9 DOT, and the current price of DOT is 5 USDT. To prevent further losses, User A sets up three SL orders as follows:
SL Order 1: SL price is 2 USDT with an SL amount of 5 DOT.
SL Order 2: SL price is 3 USDT with an SL amount of 5 DOT.
SL Order 3: SL price is 4 USDT with an SL amount of 5 DOT.
User A has set a total of 15 DOT in SL orders, while User A's position size is 9 DOT. Since the total SL order amount exceeds the position size, the system will sort all SL orders in the position from the largest to smallest price difference from the current price and reduce the amounts one by one. The first SL order amount to drop to 0 will be canceled. The system will continue to reduce the size of the second SL order as needed until the total TP/SL order amount matches the position size.
In this example, the total reduction needed for the SL orders is = 15 - 9 = 6. Following the rules above, the system will cancel SL Order 1, reduce SL Order 2 by 1 DOT, and leave SL Order 3 unchanged. At this point, the TP/SL order amount will match the position size.
2) Why is my available balance still 0 even after transferring funds in cross margin mode?
In cross margin mode, if your position has unrealized losses and the available balance is 0, any transferred funds will first go towards covering those losses to reduce your position risk. That's why your available balance stays at 0.
Example:
1. User A has 100 USDT in the account. User A uses 50 USDT margin to open a cross margin position worth 500 USDT with 10x leverage. This leaves 50 USDT available as margin (excluding fees).
2. If the price of the traded asset drops, resulting in an unrealized loss of 75 USDT in the cross margin position, the available margin is calculated as follows:
Available Margin
= max (0, account balance - position margin + unrealized PnL in cross margin mode - frozen assets) = max (0, 100 - 50 - 75 - 0) = 0
At this point:
- If User A transfers 15 USDT, the available margin is = max (0, 115 - 50 - 75 - 0) = 0 USDT.
- If User A transfers 35 USDT, the available margin is = max (0, 135 - 50 - 75 - 0) = 10 USDT.
Therefore, in cross margin mode with unrealized losses, your available balance might still be 0 even if you deposit more funds into your account.
3) When using Asset A's unrealized profit to open a position of Asset B in cross margin mode, why does it seem like the unrealized profit from Asset A isn't credited after using them to open and then close a losing position in Asset B?
In cross margin mode, the unrealized profits and losses are directly shown in your available margin. When the unrealized profits from Asset A are used to open a position in Asset B, the unrealized profits from Asset A are used as margin for the position in Asset B.
Example:
1. User A's available margin is 100 USDT. When BTC price is 50,000 USDT, User A uses 100 USDT margin to open a 0.02 BTC long position with 10x leverage in cross margin mode.
2. When the BTC price rises to 55,000 USDT, an unrealized profit of 100 USDT is generated and added to the available margin.
3. User A uses the unrealized profit of 100 USDT as margin to open a long position of 0.5 ETH with 10x leverage in cross margin mode.
4. The BTC price remains unchanged but the ETH price drops. This results in a 90 USDT loss on the ETH/USDT position, with the BTC profit reduced to 10 USDT. The final realized profit is 10 USDT.
From the example above, the unrealized profit in cross margin mode has been used as margin for a new position. Therefore, when the new position incurs a loss, the unrealized profit will be reduced as well.
4) Why is my entire cross margin position liquidated even when one position is in profit?
In cross margin mode, all positions share the account's available margin. When you have cross margin positions in both Asset A and Asset B, all your cross margin positions will be liquidated if the combined unrealized PnL + available margin is ≤ the total maintenance margin of all cross margin positions + position closing trading fee.
Example:
1. User A's available margin is 200 USDT. User A uses 200 USDT margin (excluding trading fees) to open a cross margin long position of 0.02 BTC with 10x leverage at 50,000 USDT, and a cross margin long position of 0.5 ETH with 10x leverage at 2,000 USDT.
2. As prices fluctuate, unrealized PnL occurs.
- When BTC rises to 55,000 USDT, the unrealized profit is = (current price - entry price) * position size = (55,000 - 50,000) * 0.02 = 100 USDT.
- When ETH drops to 1,410 USDT, the unrealized loss is = (current price - entry price) * position size = (1,410 - 2,000) * 0.5 = -295 USDT.
3. Calculate the maintenance margin required for the positions.
- If the BTC maintenance margin rate is 0.4%, the BTC maintenance margin is = current price * position size * maintenance margin rate - maintenance amount = 55,000 * 0.02 * 0.4% - 0 = 4.4 USDT.
- If the ETH maintenance margin rate is 0.4%, the ETH maintenance margin is = current price * position size * maintenance margin rate - maintenance amount = 1,410 * 0.5 * 0.4% - 0 = 2.82 USDT.
4. Determine if the liquidation standard is met (excluding position closing trading fees).
- BTC unrealized PnL + ETH unrealized PnL + available margin = 100 - 295 + 200 = 5 USDT.
- BTC maintenance margin + ETH maintenance margin = 4.4 + 2.82 = 7.22 USDT.
- Since 5 USDT is < 7.22 USDT, liquidation will trigger when unrealized PnL + available margin is ≤ all cross margin positions' maintenance margin.
From the example above, even though the BTC position is in profit, the large loss in the ETH position causes the combined unrealized PnL + available margin of the BTC and ETH position to be ≤ all cross margin positions' maintenance margin (excluding position closing trading fees). Therefore, both BTC and ETH positions will be liquidated.