What is the Margin Ratio?
The Margin Ratio shows how much of your available margin is being used to keep your position open. It’s calculated from:- Your Equity in the position
- The Maintenance Margin required
See the exact calculation in the Margin & Risk section of our Rulebook.
Margin Ratio levels to watch
| Margin Ratio | Status | Action |
|---|---|---|
| Below 80% | Safe zone | Monitor regularly |
| 80% - 99% | Warning zone | Consider reducing risk |
| 100% | Liquidation | Position will be closed |
What is the Liquidation Price?
The Liquidation Price is the Mark Price level at which your margin ratio will hit 100%, causing liquidation. It’s determined by:- Your entry price
- Position size
- Leverage
- Remaining collateral
- Funding payments (if any)
See how liquidation price is calculated in the Liquidation Mechanics section of our Rulebook.
Example
Position details:- Position: Long 1 BTC GOLD/BTC at 0.0300 BTC
- Leverage: 10x
- Initial Margin: 0.1 BTC
- Maintenance Margin: 0.025 BTC
How to lower your margin ratio
- Reduce position size — Close part of your position to free up margin
- Lower your leverage — Reduce leverage to decrease margin requirements
- Use a Stop Loss — Set a stop-loss order before your margin ratio reaches dangerous levels
Learn how to set stop orders in the Order Types & Execution Rules section of our Rulebook.
Key takeaways
Important reminders:
- Watch your Margin Ratio in the Open Positions panel
- Remember that liquidation is based on Mark Price, not the last traded price
- Don’t wait for the 80% warning — act early to manage risk