OQIRON
Leverage amplifies both gains and losses.
Leverage allows a smaller margin to correspond to a larger notional position. Higher leverage does not guarantee a higher win rate; it only amplifies the impact of price fluctuations on account equity and the margin call threshold. OQIRON limits available leverage based on risk preference and account risk limits; customers cannot manually exceed these limits via the platform.
Margin and available balance are not the same figure.
Margin refers to the funds allocated to open positions and orders; the available balance is also affected by existing positions, pending orders, fees, funding rates, and exchange calculation rules. The funds authorized for bots do not represent the full account balance; the system reserves a risk reserve and limits the amount allocated to any single bot.
The risk of forced liquidation cannot be understood solely through stop-loss orders.
When an account’s margin is insufficient to support open positions, the exchange may forcibly reduce or liquidate positions in accordance with its own rules. Stop-loss and protective orders are used to manage risk, but extreme volatility, insufficient liquidity, price slippage, or network or exchange anomalies may cause actual execution to differ from expectations; therefore, we cannot guarantee that forced liquidation will never occur.
Funding fees, transaction fees, and slippage all affect the net result.
In perpetual contracts, both long and short positions are subject to periodic funding rate settlements in accordance with exchange rules; opening and closing positions also incur transaction fees, and rapid market movements may result in slippage. The final net profit displayed on the page must be confirmed after the position is closed, fees are reconciled, and accounts are settled; it should not be determined solely by unrealized gains or the spread of a single trade.
Understanding Leverage and Margin with a Simple Example
Suppose a notional position is 1,000 USDT, and only a portion of that amount is used as margin. Even if the market fluctuates by only a few percentage points, the resulting profit or loss is still calculated based on a value close to the notional position; therefore, the change relative to the margin will be greater. Leverage alters capital requirements and risk exposure but does not change the market itself.
Exchanges use their own marked prices, maintenance margins, and risk rules to determine forced liquidation; the latest executed price visible to customers is not necessarily the sole basis for this determination. Funding fees are charged multiple times during the duration of a position, so the longer a position is held, the less reliable it is to estimate the final profit based solely on the opening price and the current price.
After reading this, what should customers be able to do?
Truly understanding a knowledge article isn’t about memorizing a few terms, but about being able to make the right decisions based on actual page content and account status. Use the checklist below to verify whether you’ve grasped the key points.
- Do not treat leverage as a tool to increase your win rate.
- Maintain sufficient available margin and risk margin
- Understanding Mark Price and Liquidation Rules
- Include transaction fees, funding fees, and slippage in the results
Frequently Asked Questions
These questions are directly related to the content of this article. Answers are based on current platform rules and actual operational standards; however, when it comes to packages, percentages, the scope of available features, or account status, the information displayed on the customer dashboard and official statements shall prevail.
- Does higher leverage always mean higher returns? | No. Leverage amplifies both gains and losses as well as the risk of forced liquidation, but it does not increase a strategy’s win rate. The system limits leverage based on risk preference, account equity, and risk limits; this limit cannot be overridden via the customer portal.
- Does setting a stop-loss guarantee that you won’t be forced to liquidate? | No, it does not. Stop-loss orders and protective orders are used to manage risk, but extreme volatility, price slippage, insufficient liquidity, network latency, or exchange malfunctions may cause the execution price and time to deviate from expectations. The exchange may still execute a forced liquidation or position reduction in accordance with margin rules.
- Why is there a difference between the mark price and the last traded price? | The last traded price is the price of the most recent market trade; the mark price is estimated by the exchange based on its own rules to reflect a fairer contract value and is typically used to calculate floating P&L and liquidation risk. The calculation criteria on this page must be based on the actual data from the corresponding exchange.