MiniEx Perpetual Contract Position Mode Explanation
To meet different user preferences for capital utilization and risk management, MiniEx offers a combination of two position mode mechanisms:
Margin Mode: Cross or Isolated
These determine the position structure combinations available to users:
Cross Margin Mode
Definition: All positions share a common margin account; funds are fully shared across positions.
Features:
High capital efficiency: All available balance can be used as margin for any position, avoiding forced liquidation due to insufficient margin on a single position.
Suitable for: Ranging markets or hedging strategies (e.g., holding long and short positions simultaneously).
Example:
An account holds 10,000 USDT and opens both a BTC long and an ETH short. The 10,000 USDT margin is shared across both. If the BTC position is at a floating loss while ETH is in floating profit, the profit offsets the margin needs of the BTC position.
Isolated Margin Mode
Definition: Margin is calculated and allocated independently for each position.
Features:
Risk isolation: Forced liquidation on one position won’t affect other positions or the rest of the account balance.
Lower capital efficiency: Margin must be allocated separately per position, which may lead to idle funds.
Suitable for: One-sided market trends or high-risk speculation, requiring strict risk control for individual trades.
Example:
Using 10,000 USDT to open a BTC long position under isolated mode. If liquidation occurs, only the 10,000 USDT is at risk. The rest of the account remains unaffected.
Position Mode Switching Notes
Mode can only be selected before opening a position. It cannot be changed during an active position.
Mode selection affects liquidation risk structure, capital efficiency, and risk control models.
If you have any questions or suggestions about position modes, feel free to contact MiniEx customer support at any time.