Margin Account Parameters

Let’s get into the fundamental parameters that govern margin accounts on Intel Markets. Understanding these parameters is crucial for traders to effectively manage their positions and assess their risk exposure.

1. Account Equity

Account equity represents the total value of a trader's margin account, encompassing the current market value of all open positions and the available USDC equity.

Equity=Balance+Unrealized PnL+Unpaid Funding

2. Buying Power

Buying power indicates the amount of capital a trader can deploy after considering the leverage offering for the market being traded. It is determined by multiplying the free collateral by the initial margin per lot and the mark price.

Buying Power=Free Collateral×Initial Margin Per Lot×Mark Price

3. Free Collateral

Free collateral represents the amount of unused collateral in a trader's account, excluding funds allocated to collateralize other positions or open orders.

Free Collateral=Balance+Unrealized PnL+Unpaid Funding−Initial Margin

4. Margin Usage

Margin usage refers to the percentage of equity utilized to collateralize positions.

Margin Usage=( Initial Margin Equity )×100%

5. Current Account Leverage

Current account leverage denotes the overall leverage ratio of a trader's account, calculated by dividing the value of all open positions by the account equity.

Equation:

Current Account Leverage = (Value of All Open Positions X Account Equity)

6. Initial Margin

Initial margin represents the minimum available balance required to open a position. It is determined based on the leverage applied, with higher leverage ratios requiring lower initial margin amounts.

7. Maintenance Margin

Maintenance margin indicates the minimum available balance a trader must maintain to avoid the risk of liquidation and ensure that their positions remain open.

8. Maximum Initial Leverage

Maximum initial leverage denotes the highest leverage at which a trader can establish a position in a given market. It varies depending on the asset being traded, with different maximum leverage limits for Ethereum and Solana-based assets.

9. Maximum Maintenance Leverage

Maximum maintenance leverage represents the maximum leverage allowed after establishing a position. It determines the highest leverage ratio that a trader can maintain without risking liquidation.

10. Liquidation Threshold

The liquidation threshold signifies the price level at which a trader's positions become susceptible to liquidation. It is triggered when the USDC equity falls below the margin maintenance level.

Understanding these margin account parameters is essential for traders to effectively manage their positions, assess their risk exposure, and make informed trading decisions on Intel Markets.