Cross Margin: Why Closing a Position May Not Free Its Margin
Summary
The document explains why closing a perpetual futures position may increase Available Balance by less than the margin shown for that position. It focuses on cross margin, where open positions share a common pool of collateral. If other positions have losses that leave them below initial margin requirements, funds from a closed position can be used to support those positions instead of becoming available for new trades.
The example describes a position showing 1,000 USDC in margin, while noting that less than this amount may become available after closing. The remaining funds still count toward Total Balance; the amount available to trade depends on overall margin requirements. This is a brief support explanation rather than a complete account of margin calculations. It does not specify the exact formulas, thresholds, or treatment of every account configuration.
Key ideas
- In cross margin mode, positions draw on a shared pool of margin.
- Funds from closing a position may support other open positions with losses.
- Total Balance can include funds that are not currently available to trade.
- The available amount depends on the account’s overall margin requirements.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.