When placing an order, margin is reserved for:
- Margin for the order
- Trading Fees
1. Order Margin
This is based on the Initial Margin % of the contract.
Formula:
Order Margin = Order Size × Contract Value × Initial Margin%
- The Initial Margin% varies by contract and increases with order size due to margin scaling.
- You can view specific margin requirements in the Contract Specifications and Margin Explainer.
Note:
If you already have an open position or order in the same contract, Margin Offsetting applies.
Delta uses an Isolated Margin System, where:
- All open positions have separate margin.
- All open orders in a contract share margin.
- Opposite-side orders/positions are netted to reduce margin requirements.
Example:
If you’re long 100 BTCUSD contracts and place a short order of 100 BTCUSD at the same leverage, no extra margin is required due to margin offsetting.
2. Trading Fees Reserved
Trading fees are pre-reserved at the time of placing the order for both:
- Entry (when order becomes a position)
- Exit (when position is closed)
Formula:
Trading Fees = (Qty × Entry_Price × Fee) + (Qty × Exit_Price × Fee)
- Entry/Exit prices are estimated based on market conditions.
- Depending on how the order executes, you may be charged a Maker or Taker fee.
? Learn more about Maker and Taker Fees here.
Summary:
Total margin reserved = Order Margin + Estimated Trading Fees.
Always ensure you have sufficient balance before placing orders.
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