Dear Users,
Margin is the amount of funds required to open and maintain a leveraged position. In BingX CFD trading, the margin mechanism lets you control a larger position size with less capital. This article explains how CFD margin is calculated, and how it affects your account equity, available margin, and margin ratio (risk level). After you transfer USDT into your CFD account, it converts to USDx at a 1:1 ratio for trading CFDs. All calculation examples in this article are denominated in USDx.
1) Basic Margin Calculation Formula
1. Formula explanation
BingX CFD uses cross margin mode and a tiered margin system. As position risk exposure increases, the applicable margin requirement percentage increases progressively based on the risk exposure tier.
The general formula for required margin is:
Required margin = Position risk exposure × Margin requirement (%)
Position risk exposure = Entry price × Lots × Contract size
Or expressed equivalently:
Required margin = Trading volume (lots) × Contract size × Entry price / Leverage
Of which,
- Contract size: The standard contract size per lot.
- Lots: The number of lots traded (tick size: 0.01 lot).
- Margin requirement (%): The percentage of position risk exposure required as margin.
2. Notes
- Each trading asset applies different contract sizes, lots, and margin requirements.
- BingX CFD supports four major asset types: metals, stock indices, forex, and commodities.
- In addition, the platform offers two trading modes: zero fee mode and ultra-low spread mode. Both modes use identical margin calculation rules — only the trading cost structure differs.
3. Cross margin mode features
CFD uses cross margin mode, so unfilled trigger orders do not occupy available margin.
2) Basic Margin Calculation Examples
1. Example 1 — Single position
You open a position with the following details:
- 1 lot of XAUUSD (gold)
- Contract size: 100 ounces
- Entry price: 3,250
- XAUUSD margin requirement: no more than 10,000,000: 0.2%
The required margin is calculated as follows:
Position risk exposure = Entry price × Lots × Contract size = 3,250 × 1 × 100 = 325,000
Required margin = Position risk exposure × Margin requirement = 325,000 × 0.2% = 650 USDx
You must have at least 650 USDx as margin to open this position.
2. Example 2 — Multiple positions (same position side)
You open positions with the following details:
- Position 1: 20 lots of XAUUSD, entry price 3,200
- Position 2: 30 lots of XAUUSD, entry price 3,250
- Total lots: 50, contract size: 100
- XAUUSD margin requirement: no more than 10,000,000: 0.2%. No more than 20,000,000: 1%. No more than 40,000,000: 10%.
Average open price = (3,200 × 20 × 100 + 3,250 × 30 × 100) / (20 + 30) / 100 = 3,230
Position risk exposure = 3,230 × 50 × 100 = 16,150,000
Required margin (calculated on a tiered basis) = 10,000,000 × 0.2% + 6,150,000 × 1% = 20,000 + 61,500 = 81,500 USDx
You must have at least 81,500 USDx as margin to open these positions.
3) Margin Calculation for Hedge Mode Positions
CFD accounts support hedge mode, which lets users hold both buy and sell positions on the same trading asset at the same time.
1. Full hedging
Holding buy and sell positions with the same number of lots in the same trading asset. Position margin = Hedge mode risk exposure × Margin requirement (%).
2. Partial hedging
Holding buy and sell positions with different number of lots in the same trading asset. Position margin = Hedge mode risk exposure × Margin requirement (%) + Unhedged position risk exposure × Margin requirement (%).
* Hedging does not exempt you from margin requirements. Whether fully hedged or partially hedged, margin is calculated based on the average open price. For fully hedged positions, account equity may still fluctuate due to different swap fee rates applied to buy and sell positions, as well as net unrealized PnL caused by floating spreads.
3. Example
Hold XAUUSD: buy 10 lots (average price 3,250) + sell 5 lots (average price 3,260)
- Hedged portion: 5 lots × 100 × 3,250 × 0.2% = 3,250 USDx
- Unhedged portion: 5 lots × 100 × 3,250 × 0.2% = 3,250 USDx
- Total margin = 6,500 USDx (equivalent to calculating based on the larger side of 10 lots)
4) Tiered Margin Rate (Higher Position Size Means Lower Leverage)
CFDs use a tiered margin system. The core logic is the larger the position size → the higher the required margin rate → the lower the actual available leverage.
This means small positions can access maximum leverage, and as the position size increases, the portion above the threshold will be subject to a higher margin rate. Margin is calculated based on the weighted rates of each tier, instead of applying the highest tier to the entire position.
Tiered margin rate table (using XAUUSD as an example):
- 0 - 10M USDx: margin requirement 0.2%, equivalent maximum leverage 500x
- 10 - 20M USDx: margin requirement 1%, equivalent maximum leverage 100x
- 20 - 40M USDx: margin requirement 10%, equivalent maximum leverage 10x
- 40 - 100M USDx: margin requirement 20%, equivalent maximum leverage 5x
- 100 - 168M USDx: margin requirement 50%, equivalent maximum leverage 5x
- 168M USDx or above: margin requirement 50%, equivalent maximum leverage 5x
Tiered rates vary by trading asset. Refer to the contract information on the platform's trading page for details.
Example
- Assume exposure is 25,800,000 USDx
- Margin = Tier 1 10,000,000 × 0.2% + Tier 2 10,000,000 × 1% + Tier 3 5,800,000 × 10% = 20,000 + 100,000 + 580,000 = 700,000 USDx
5) Initial Margin Rate Adjustment Rules for Special Market Sessions
During certain market sessions, due to reduced liquidity or increased volatility, the platform will automatically raise the minimum initial margin rate applied to newly opened positions to help protect user funds.
1. Applicable sessions
- Major announcement release period: from 15 minutes before release to 5 minutes after release.
- After Monday market open: within 30 minutes after market open.
- Before market close, Monday through Thursday: 30 minutes before close.
- Before Friday market close: 3 hours before close.
2. Minimum initial margin rate by asset category
During special sessions, the minimum initial margin rate for each asset category is adjusted as follows:
| Asset | Minimum initial margin rate during special sessions |
| Forex Currency Pairs | 0.005 |
| Crude Oil | 0.1 |
| Gold | 0.01 |
| Platinum / Palladium | 0.2 |
| Stock Indices | 0.01 |
- The minimum initial margin rate only affects the margin sufficiency check at the time of opening a position. If the account's available margin does not meet the adjusted initial margin rate requirement, the order to open the position cannot be executed.
- Existing positions are not affected. The maintenance margin requirement for existing positions does not change during special sessions.
- After the special session ends, the minimum initial margin rate will automatically return to its normal level.
6) Automatic Leverage Adjustment Mechanism
When adding a new position causes your total position size to move into a higher margin tier, the system will automatically adjust your effective leverage (not nominal leverage) to reflect the actual margin requirement. This is a natural result of the tiered margin system.
Trigger conditions include:
- Adding to a position causes total exposure to move into the next tier.
- The platform lowers the maximum leverage for a specific asset due to changes in market conditions.
Example: You hold 30 lots of XAUUSD (average entry price 3,250, exposure 9,750,000, all within Tier 1). After opening 10 new lots (entry price 3,300):
- New average entry price = 3,262.5
- Total exposure = 13,050,000 USDx
- Margin = 10,000,000 × 0.2% + 3,050,000 × 1% = 50,500 USDx
- Effective leverage = 13,050,000 / 50,500 ≈ 258x (lower than the nominal maximum leverage of 500x)
Automatic adjustment lowers effective leverage, increases used margin, reduces available margin, and lowers the margin ratio. Make sure your account always maintains sufficient available margin.
7) Key Account Metrics
- Account balance = deposits ± closed PnL ± other realized adjustments (commission, swap fees, taxes, etc.)
- Account equity = account balance + unrealized PnL - total swap fees
- Used margin = total margin currently allocated to positions
- Available margin = account equity - used margin
- Margin ratio (%) = (account equity ÷ used margin) × 100%
* In the MT5 terminal, "floating PnL" already includes swap fees. For ease of understanding, this article lists price PnL and swap fees separately, though the mathematical result is equivalent.
Unfilled trigger orders do not use available margin.
Risk levels of margin ratio:
- ≥ 600%: Low risk (green)
- ≥ 100% and < 600%: Medium risk (orange)
- ≥ 0% and < 100%: High risk (red)
8) Liquidation and Risk Warning
When your margin ratio drops to ≤ 50%, the system will trigger liquidation. The system will automatically start closing positions step by step, beginning with the position with the largest loss.
Example (in ultra-low spread mode): You transfer in 10,000 USDT (converted 1:1 to 10,000 USDx), open a 1-lot XAUUSD buy position at an entry price of 3,250, and after paying a 6 USDx commission, your account balance is 9,994 USDx, with 650 USDx required as margin.
During the holding period, a 30 USDx swap fee accrues, and the market buy price rises to 3,280:
- Unrealized PnL = (3,280 − 3,250) × 1 × 100 = 3,000
- Account equity = 9,994 + 3,000 - 30 = 12,964
- Margin ratio = (12,964 / 650) × 100% = 1,994.5%, low risk
If the market drops to 3,160:
- Unrealized PnL = -9,000, account equity = 964, margin ratio = 148.3%, medium risk
If the price continues to drop to 3,153.7:
- Unrealized PnL = -9,630, account equity = 334, margin ratio = 51.4%, close to the liquidation line
When the margin ratio drops to ≤ 50%, liquidation is triggered.
Risk management recommendations: Higher position risk exposure leads to higher tiered margin requirements. Hedging does not exempt you from margin requirements. Maintaining sufficient available margin is especially important during periods of high market volatility. Holding positions over the weekend may expose you to gap risk. Liquidation is executed at real-time market bid/ask prices (buy positions are closed at the bid price, sell positions are closed at the ask price).
9) FAQ
Q1: Is margin calculated the same way in zero fee mode and ultra-low spread mode?
A: Yes. The margin calculation rules are identical for both modes. Only the trading cost structure differs.
Q2: How is USDT used after being transferred into a CFD account?
A: After transferring in, USDT is automatically converted 1:1 to USDx, which serves as the pricing and settlement currency for CFD trading.
Q3: What happens if the margin ratio drops below 50%?
A: The system will trigger liquidation, automatically closing positions starting with the one with the largest loss.
Q4: Does an unfilled trigger order occupy margin?
A: No. CFD uses cross margin mode, so unfilled trigger orders do not occupy available margin.
Q5: Why is my effective leverage lower than the maximum leverage for the asset?
A: This is a normal effect of the tiered margin system. When your position size exceeds the first tier, the portion above that tier is subject to a higher margin rate, which lowers your effective leverage below the nominal maximum leverage.
Q6: Will leverage limits during special periods affect existing positions?
A: Generally not — they only affect newly opened positions. However, if the platform adjusts leverage rules downward across the board, existing positions may also be affected (advance notice will be given).
Q7: Are trigger orders valid during special periods?
A: Yes, but if the leverage required at the time of triggering exceeds the current limit level, the order may not be filled.
Q8: Can hedged positions be exempt from margin requirements?
A: No. Hedging does not exempt you from margin requirements, but the calculation method differs from that of single-side positions.
Terms & Conditions
- The parameters described in this article are for illustration only. Refer to the platform's trading page for actual values.
- BingX reserves the right to adjust leverage multiples and margin requirements based on market conditions.
- Liquidation will be triggered when the margin ratio ≤ 50%, which applies to all CFD assets.
- To ensure stable system operation, the MT5 trading server will undergo scheduled restart maintenance after market close every Friday. Trading features will be temporarily unavailable during maintenance. We recommend planning your trades accordingly in advance.
- BingX reserves the right to final interpretation of this announcement, including any rule modifications, updates to terms, or cancellations.
- Multilingual translations of the product page rules may differ. If there is any discrepancy, the English original prevails.
- Any updates to the information above will be announced separately. If you still have questions about CFD, contact our customer support at any time. Thank you for your understanding and support.
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Cryptocurrencies are highly volatile and may involve various risks, including market risk, project risk, technical risk, and compliance risk. You may incur investment losses. Note the risks and invest cautiously. BingX will continue improving its trading experience and product services. Thank you for your support and understanding.
BingX Operation Team
2026-08-05
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