Traders are allowed to add/reduce the margin to a position when under isolated margin mode.
This can be done through the positions tab, by clicking on the pencil in the following screenshot and entering the new initial margin to be used for the position.
For USDT contract, when the margin is added to the position, the leverage used for opening the position and the leverage in the order zone will not be affected. The liquidation price of the position will also be recalculated base on the new position margin for the position. Traders can preview the after-adjusted liquidation price before they confirm the adjustment.
The following are 3 scenarios that will affect the extra margin that was added to the position.
Scenario 1
After additional margins were added to the position, Trader A changes the leverage at the order zone, the initial margin of the position will be reset to the initial margin required for the new leverage. Any extra margin added to the position before will be removed.
**Please be noted that traders are only allowed to lower the leverage when there is a sufficient available margin and set higher leverage only when the liquidation will not be triggered immediately. Otherwise, the leverage changing operation will be rejected.
Scenario 2
After adding an extra margin to the position. Add a new position with the same trading direction. The additional margin added will be applied to the total position.
Example:
1) A trader has a 1BTC long position with liquidation price at 9,500 USDT. Entry price 10,000USDT.
2) 1000USDT has been added to the position, which lowers the liquidation price to 8500USDT.
3) Trader adds a new long position with a contract size of 1BTC at 10,000USDT. Now the total contract size is 2BTC.
4) The added 1000USDT will be shared by the total 2BTC position. The liquidation price will move up to 9000USDT.
Scenario 3
After adding an extra margin to the position. Partially close the position. The extra margin added will be reduced proportionally according to the percentage of partial closure. The liquidation price of the position will not be changed after a partial position closure.
Example:
1) A trader has a 1BTC long position with liquidation price at 9,500 USDT. Entry price 10,000USDT.
2) 1000USDT has been added to the position, which lowers the liquidation price to 8,500 USDT.
3) 50% of the position (0.5BTC) is partially closed. The remaining contract size is 0.5BTC. The extra margin added will be reduced to 500 USDT(50%). The liquidation price of the position will remain as 8,500 USDT.