Collateral level, warning procedures and forced closing of positions

Collateral level, warning procedures and forced closing of positions

Collateral is a deposit that is blocked on the trader’s account for each transaction.


The greater the financial leverage, the less collateral will be, which will be frozen in the trader’s account.


Collateral level is the ratio of the trader’s capital and the collateral involved. The collateral level is displayed as a percentage. This indicator helps the trader understand whether he has enough funds to open new transactions or maintain already open orders.


It can be calculated using the formula:


Collateral level = Equity / Collateral involved * 100%

Equity = Balance ± Profit (Loss) on open transactions

Collateral level 
Account status
>100%Normal status
<=100%
Account is in warning status
<=50%
Forced termination of operations 



    • Related Articles

    • Frequently Asked Questions on Trading with Leveraged Tokens

      What are the spreads on FREE2EX? The bid-ask spread is the difference between the lowest price asked for an asset and the highest bid price. The FREE2EX platform has floating spreads, the size of which depends on the current price on the market. They ...

    • Differences between Gross and Net accounts and how many Leverage accounts a client can open

      Вы можете открыть в общей сумме 100 Leverage-счетов: 50 счетов типа Net и 50 счетов типа Gross. На платформе FREE2EX поддерживаются 2 вида Leverage-счетов: Net и Gross — счета для торговли с кредитным плечом. Кредитное плечо позволяет торговать ...

    • Types of orders used on FREE2EX

      Orders on a cryptocurrency exchange are exchange requests that users send to the server. Different types of orders have different execution procedures. In one case, the operation is completed immediately at the current rate, while in others it is ...

    • Orders used on FREE2EX

      Orders on a cryptocurrency exchange are exchange requests that users send to the server. Different types of orders have different execution procedures. In one case the operation is completed at once at the current rate, in other cases it is postponed ...

    • Account and verification FAQs

      Do I have to take the survey? A survey on understanding of blockchain technology and risks associated with tokenization is a mandatory verification stage for residents of the Republic of Belarus based on the requirements of the legislation of the ...