Hoo perceptual contract now support two modes: Isolated Margin and Cross Margin.
1. Isolated Margin
In an Isolated Margin mode, users are allowed to hold both long and short positions. The risk of them are evaluated separately.
If get liquidated, the trader will only lose his position margin, which means the maximum loss of the trader is the margin.
When the trader closes the position himself, the profit and loss of the long position and short position will be settled immediately to corresponding position margins.
Even if the position gets liquidated, all the trader lost would be just the margin, and his other assets will not be affected.
2. Cross Margin
In a Cross Margin mode, all the available assets will be seen as margin. Only when the the loss exceeded the account balance will he be liquidated.
This mode is of high anti-loss capability. It is convenient to process and to calculate the position, thus it is often used for hedging and quantitative trading.
Dec. 20, 2019