Understanding Account Equity and Available Balances in Margin Trading

Margin trading introduces complex calculations for determining your account's true equity and available balances. Let's break down these critical concepts to help you manage risk and make informed trading decisions.

Core Components of Margin Account Equity

1. Coin-Specific Equity

This represents the total value of a specific cryptocurrency across all account types:

Coin Equity = Account Balance 
            + Cross-Margin Position P/L 
            + Isolated Margin Balance 
            + Isolated Position P/L 
            + Options Market Value 
            - Cross-Margin Interest Payable

2. Total Account Equity

The combined USD-equivalent value of all coins in your account:

Account Equity = Σ(Coin Equity × Coin Price)

Available Balance Calculations

Available Coin Balance

The immediately usable amount for:

Isolated margin positions
Options purchases (as buyer)
Spot trading sell orders

Key Differences: Cross vs. Isolated Margin

Feature	Cross-Margin	Isolated-Margin
Risk Allocation	Shared across positions	Contained per position
Liquidation Risk	Higher (shared collateral)	Lower (separate collateral)
Available Balance	Dynamic calculation	Clear separation

Practical Example Calculation

Let's examine a BTC/USDT scenario:

Account Balance: 0.5 BTC
Cross-Margin Position: +0.2 BTC profit
Isolated Margin: 0.3 BTC locked
Isolated Position: -0.1 BTC loss
Options Value: +0.05 BTC
Interest Payable: 0.01 BTC

BTC Equity = 0.5 + 0.2 + 0.3 - 0.1 + 0.05 - 0.01 = 0.94 BTC

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Risk Management Tips

Monitor Equity Daily: Small changes compound in margin trading
Understand Collateralization: Different coins have varying loan-to-value ratios
Calculate Available Balance: Before opening new positions

FAQ Section

Q: Why does my available balance differ from total equity?
A: Available balance excludes locked collateral and pending orders, while equity includes all positions.

Q: How often are equity calculations updated?
A: Real-time, with each price movement and position change.

Q: Can I convert isolated margin to cross-margin?
A: Yes, but this requires closing and reopening positions with different settings.

Q: What happens when equity drops below requirements?
A: You'll receive margin calls and eventually face liquidation if not addressed.

Q: How does leverage affect equity?
A: Higher leverage amplifies both profits and losses proportionally.

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Advanced Considerations

Portfolio Margin: Some exchanges calculate equity based on correlated assets
Hedging Positions: Offsetting positions may reduce collateral requirements
Interest Accrual: Continuous costs affect long-term equity