FAQ
Cross Margin: Frequently Asked Questions
Cross margin accounts are a unique Kwenta offering that allows traders to trade any market by using a single margin account. With cross margin accounts, traders can seamlessly trade different markets with fewer transactions and less hassle. Learn here how to trade cross margin.
Yes, it is possible to open positions on the same market on both cross margin and isolated margin. Traders can have e.g. an ETH-PERP long position open on cross margin, and switch to isolated margin and open a short on ETH-PERP, and manage them independently.
Cross margin provides traders with powerful risk management tools, letting them tailor each position to their personal trading style with an optional fee rejection parameter. This allows traders to have orders rejected if the current dynamic exchange fee spikes beyond acceptable levels.
Under isolated market contracts, users are forced to risk all of the collateral in a single market they deposit and can only protect collateral from liquidation by completely withdrawing the collateral they wish to protect. With cross margin, traders are able to select the amount of collateral they are comfortable risking when opening a position while unused collateral will stay safe in the cross margin account if liquidations should occur.
By default, all Synthetix Futures contracts are isolated markets with no advanced order support, requiring traders to deposit and withdraw separately for each asset they wish to trade. With a cross margin account, traders can seamlessly trade different markets from a single account while receiving access to more advanced order types such as limit and stop market orders.
The minimum deposit and position size value for cross margin accounts is 50 sUSD.
In addition, the minimum position size must be 50 sUSD without any leverage. If your order is below the 50 sUSD minimum, reduce your leverage and reattempt the trade.
Example: A 250 sUSD position order at 10x leverage will only require 25 sUSD in collateral, which will fail to execute. Reducing your leverage to 5x will now require 50 sUSD collateral (the minimum) to open a 250 sUSD position. Alternatively increasing your position size to 500 sUSD will also solve this.
When Closing a Position
Traders can set as many limit or stop market orders as they want when closing an open position. So long the advanced orders do not exceed the current open position the advanced order will not reserve additional margin.
Traders can set as many limit or stop market orders up until their account margin is exhausted.
Reserved margin occurs when a trader places an advanced order. Advanced orders execute at a later time when their conditions have been met. Due to this the margin necessary to execute the advanced order needs to be put on reserve. Any reserve margin will be made available if an advanced order is canceled before it executes.
No fees will be imposed unless the keeper has successfully executed a traders advanced order.
Advanced orders such as limit and stop market are executed by Gelato Keepers. Keepers need ETH to pay for gas in order to submit transactions to the blockchain. These costs will be drawn out of your account ETH balance. Traders can withdraw their account eth balance at any time if they do not have any pending advanced orders open.
The minimum account ETH balance is 0.01 ETH. Anytime your account ETH balance is below this minimum, the next advanced order will automatically deposit enough ETH to bring it back to 0.01 ETH.
Kwenta fees are charged when a trader opens, modifies or closes a trade through the cross margin contracts. Fees may vary. The most current fees will be displayed below & within the Kwenta trading UI.
Order Type | Kwenta Fee | Keeper Fee |
|---|---|---|
Trade Fee | 2 bps | N/A |
Limit | 3 bps | Dependent on network congestion (ETH) |
Stop | 3 bps | Dependent on network congestion (ETH) |
Example: Alice takes a position for 1000 sUSD on cross margin and submits a limit order. Alice will be charged 2 bps for routing an order through cross margin accounts and 3 bps for the limit order, together she will be charged 5 bps in Kwenta fees for this trade. If Alice executes a market order through cross margin accounts, she will be charged 2 bps in total.
Last modified 5mo ago