What is the Margin Ratio?

What is the Margin Ratio?

For undertaking a leveraged trade, you will be required by the exchange to deposit a certain amount of your total trade as collateral.

You will be able to view the Margin Ratio in the Portfolio Tab from the Current Status table and also from the Positions Tab below the candlestick charts in the Margin Details Section.

The margin Ratio can be calculated as follows:

Margin Ratio = Maintenance Margin/Margin Balance


Maintenance Margin is the minimum amount that a trader should have in their wallet account after a trade. It is usually a certain percentage of the total exposure taken up by the trader. Usually if the margin falls below such maintenance margin, the trader will be required to fill in such difference (Margin Call) or else the position will be liquidated.

Your margin ratio depicts if your margin balance can cover your maintenance margin. A Margin ratio of 100% means that your margins are insufficient to cover your trades and your position will get liquidated or squared off.

You can add margins to your trade if you feel that the ratio is dangerously high and might end up liquidating your trade. Doing so shall reduce your Margin ratio.

If you feel that your margin ratio can sufficiently cover your trades, you can also remove a portion of your margin. This will end up increasing your Margin ratio.

You can increase/decrease your margin for a certain trade by going to the Positions Tab below the candlestick chart and clicking the + sign in the Margin Used column.

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