Contract trading locks margin and magnifies the assets through leverage. There are two rates in regards to margin: margin rate and maintenance margin rate. Whether you will be partially liquidated or liquidated usually depends on them.
Margin rate = (margin + unrealized profit and loss) / position value
Position value = face value*number of contracts / last mark price
Margin maintenance rate
To avoid the large positions being liquidated causing bad impact to the market liquidity, the contract product of Hoo adopts position gradient maintenance margin rate ranks. The bigger the position is, the higher the maintenance rate is, and the lower the leverage level available is.
Margin rate, maintenance margin rate and liquidation
When the margin rate is smaller than the maintenance margin rate the trader users, it will trigger partial liquidation or even liquidation.