Key Terms and Formulas in Trading Account
21 days ago · Updated on

 

Account-Based

Term Definition Formula
Total Net Value The total net value of all assets in the account without considering the collateral value ratio (calculated in USD). Wallet Balance + Unrealized PnL of Perpetual Contracts
Margin Balance The total amount in the account available as margin after applying the collateral value ratio (calculated in USD). Cross Margin Wallet Balance + Unrealized PnL of Perpetual Contracts
Account Initial Margin Rate The initial margin rate at the account level. Total Cross Margin Initial Margin ÷ (Margin Balance - Order Loss)
Account Maintenance Margin Rate The maintenance margin rate at the account level. Total Cross Margin Maintenance Margin ÷ (Margin Balance - Order Loss)
Total Initial Margin The total initial margin amount in the account (calculated in USD). Σ Initial Margin of Open Positions + Σ Initial Margin of Active Orders + Σ Initial Margin of Borrowed Assets
Total Maintenance Margin The total maintenance margin amount in the account (calculated in USD). Σ Maintenance Margin of Borrowed Assets + Σ Maintenance Margin of Open Positions + Σ Maintenance Margin of Valid Orders
Unrealized P&L of Perpetual Contracts The total unrealized profit and loss of USDT perpetual contracts. Σ Unrealized PnL of Asset-Based Perpetual Contracts
Order Loss The total potential margin value loss caused by the difference between order price and mark price in perpetual contract orders. Σ Asset-Based Order Loss (all perpetual contract orders)
Order Loss: max[0, (Mark Price – Order Price) × Order Quantity] or max[0, (Order Price – Mark Price) × Order Quantity]

 

Asset-Based

Term Definition Formula
USD Value Asset Value (calculated in USD)
Wallet Balance The actual amount of assets you hold in your UTA wallet, calculated in USD.
Net Value Net Asset Value without applying the collateral value ratio Asset Wallet Balance + Unrealized PnL of Perpetual Contracts
Unrealized P&L of Perpetual Contracts Unrealized PnL of USDT Perpetual Contracts

USDT Perpetual Contracts:

  1. Long Position: (Mark Price – Average Entry Price) × Position Size

  2. Short Position: (Average Entry Price – Mark Price) × Position Size

Inverse Contracts:

  1. Long Position: Position Size × (1/AverageEntryPrice)–(1/MarkPrice)(1 / Average Entry Price) – (1 / Mark Price)

  2. Short Position: Position Size × (1/MarkPrice)–(1/AverageEntryPrice)(1 / Mark Price) – (1 / Average Entry Price)

Margin Balance Amount of assets available as margin after applying the collateral value ratio (in USDT) Cross Margin Wallet Balance + Unrealized PnL of Perpetual Contracts
Available Balance (for Derivatives Trading) Amount of assets available for opening USDT perpetual contract positions Cross Margin Balance – Total Initial Margin – Frozen Assets
Initial Margin (for Open Positions and Active Orders) The initial margin is the minimum amount of funds required to create derivative orders and positions

Active Order Initial Margin = (Order Value / Leverage) + Estimated Fee to Open + Estimated Fee to Close Position

USDT Contracts:

Order Value = Order Size × Order Price 

Inverse Contracts:

Order Value = Order Size ÷ Order Price 

Position Initial Margin = 

(Position Value / Leverage) + Estimated Fee to Close Position

USDT Contracts:

Position Value = Position Size × Mark Price

Inverse Contracts:

Position Value = Position Size ÷ Mark Price  

IM for Hedged Positions (Cross Margin Mode):

Position with Higher Value:

1. Long position

IM = (Mark Price × Hedged Position Size ÷ Leverage) + [Entry Price × Hedged Position Size ×  (1 - 1 ÷ Leverage) × Taker Fee Rate × 2] + (Entry Price × Net Position Size × (1 - 1 ÷ Leverage) × Taker Fee Rate)

When fully hedged, net position size = 0

2. Short position

IM = (Mark Price × Hedged Position Size ÷ Leverage) + [Entry Price × Hedged Position Size (1 + 1 ÷ Leverage) × Taker Fee Rate × 2] + (Entry Price × Net Position Size × (1 + 1 ÷ Leverage) × Taker Fee Rate)

When fully hedged, net position size = 0

Position with Lower Value:

1. Long position

IM= Entry Price × Hedged Position Size × (1 − 1 / Leverage)  × Taker Fee Rate × 2

2. Short position

IM= Entry Price × Hedged Position Size × (1 + 1 / Leverage)  × Taker Fee Rate × 2

Initial Margin (on Borrowed Assets) The amount of initial margin taken up for Spot Trading  Asset Borrow Size × IM Rate for Borrowed Asset
IM Rate (for Borrowed Assets) The initial margin rate required for borrowing assets IMR for borrowed assets = 1/Leverage
Borrowed Amount Total borrowing amount for a corresponding asset with insufficient available balance Cross Margin Absolute Value [min (0, Net Value –  Frozen Assets)]
Maintenance Margin (for Open Positions and Active Orders) Maintenance margin is the minimum amount of funds required to maintain derivative positions. The required maintenance margin rate (MMR) depends on your risk limit level— as your risk limit level increases, the MMR required for open positions and active orders will also increase accordingly.

Maintenance Margin = Position Size × Mark Price × Maintenance Margin Rate + Estimated Fee to Close Position
MM for Hedged Positions (Cross Margin Mode):

Position with Higher Value:

1. If it is a long position 

MM = [(Mark Price × Net Position Size × MMR) − MM Deduction] + [Entry Price × Hedge Position Size × (1 - 1 ÷ Leverage) × Taker Fee Rate × 2] + [Entry Price × Net Position Size × (1 - 1 ÷ Leverage) × Taker Fee Rate] 

When fully hedged, net position size = 0

2. If it is a short position

MM = [(Mark Price × Net Position Size × MMR) − MM Deduction] + [Entry Price × Hedge Position Size × (1 + 1 ÷ Leverage) × Taker Fee Rate × 2] + [Entry Price × Net Position Size × (1 + 1 ÷ Leverage) × Taker Fee Rate] 

When fully hedged, net position size = 0

Position with Lower Value:

1. If it is a long position

MM = Entry Price × Hedged Position Size × (1 − 1 / Leverage)  × Taker Fee Rate  × 2

2. If it is a short position

MM = Entry Price × Hedged Position Size × (1 + 1 / Leverage)  × Taker Fee Rate  × 2

Maintenance Margin (for Borrowed Assets) The amount of maintenance margin occupied by assets triggered for automatic borrowing. Borrowed Amount × Maintenance Margin Rate of the Borrowed Asset
Maintenance Margin Rate (for Borrowed Assets) The maintenance margin rate required for borrowed assets. The required MMR depends on your position tier — as your position tier increases, the minimum maintenance margin rate for borrowed funds will also rise accordingly. Please refer here to view the required maintenance margin rate for each borrowed asset.