1.In contract trading, traders can apply leverages ranging from 1 to 100 times. The higher the leverage used, the margin required for the same position will be reduced in proportion. The leverage is inversely proportional to the margin.


2.While using leverage, the liquidation price will also change accordingly. The higher the leverage, the greater the risk.


3.Coinstore supports fixed margin and cross margin mode. The default leverage of the fixed margin mode is 100. The leverage of the cross margin mode is adjustable between 1x to 100x integers.


4.Take the BTC / USDT perpetual contract as an example:


On the Coinstore platform, the value of each BTC / USDT contract is 0.001BTC, the minimum transaction unit is 1. The trader chooses a 1x leveraged transaction of 1, the total cost equals to the commission value.


If the trader chooses 100 times leverage, the total cost is equal to the commission value divided by 100. And the margin of the transaction freeze equals to the total cost.


In this example: Commission value = 0.001 (BTC) * 9961 (USDT) * 10 (units) = 99.61 (USDT)


Frozen margin = 99.61 (USDT) /100=0.996 (USDT)


5.When traders place an order, the leverage multiple can still be adjusted according to the risk tolerance of the trader. For example, the user can choose to lower the leverage multiple for a short leave. Here, the frozen margin will increase in proportion to reduce the risk of liquidation caused by abrupt market fluctuations during this period.