What is MMR Stop Loss?
For futures contracts, position risk is measured by the Maintenance Margin Ratio (MMR). A lower MMR represents higher risk. When the MMR reaches 100%, forced liquidation is triggered, potentially causing significant losses. Although traders can set stop-loss orders to protect their positions, the issue arises when the MMR hits 100% before the stop-loss price is triggered, exposing traders to excessive risk.
To help users implement a more complete trading strategy and better manage risk, DeeBit Exchange has developed a new stop-loss feature: setting a stop-loss based on the margin ratio (MMR) trigger. With this feature, traders can proactively control account risk and better manage the volatility associated with cryptocurrency trading.
The MMR stop loss allows traders to set a threshold between 110% and 900%. For example, if you set a threshold of 385% for a long position on the BTCUSDT futures market, when the MMR reaches or drops below 385%, the system will liquidate your entire long position on BTCUSDT.
Note:
- The MMR stop-loss order currently only supports USDT perpetual and BTC perpetual futures under the classic account mode.
- Only positions in full margin mode support MMR stop-loss orders. Isolated margin mode does not support this feature. If you switch from full margin mode to isolated margin mode, any MMR stop-loss orders will be automatically canceled.
- The MMR stop-loss is configured based on the position in the trading market, and it will liquidate the corresponding position when triggered.
- In cases of extreme market volatility, the MMR value may jump directly to 100% (which will trigger forced liquidation). In such situations, the MMR stop-loss may fail to trigger.
How does the MMR Stop Loss work?
When the account margin ratio reaches the preset trigger MMR for a position, the position will be liquidated using a market order at the best available price.
When setting an MMR liquidation order, please pay attention to the following points:
- MMR liquidation orders can only be submitted from the position tab after the position is opened.
- Partial position MMR liquidation orders are not supported, and each position can only have one MMR liquidation order.
- When there is an MMR order for a full-margin position, and you switch your margin mode from full margin to isolated margin, the MMR stop-loss order for that position will be automatically canceled.
- The maximum MMR value is 900%, and the minimum is 110%. A valid preset trigger MMR must be between 110% and the current account MMR.
- If multiple MMR liquidation orders for different positions are triggered at the same time with the same MMR value, the liquidation sequence will be based on the pre-determined liquidity order. For example, if the MMR for BTCUSDT is 150% and the MMR for ETHUSDT is 155%, ETHUSDT's MMR stop-loss will be executed first. After ETHUSDT is liquidated, the system will check whether the account MMR meets the BTCUSDT MMR stop-loss trigger condition (set at 150%). If the account MMR is above 150%, the BTCUSDT MMR stop-loss will not be triggered and will remain in pending status until the MMR falls back to 150%. This ensures that each MMR stop-loss is executed in logical order according to the trigger conditions.
In extreme market conditions, the MMR may suddenly drop to 100%, in which case the MMR stop-loss may not trigger, leading to forced liquidation. For example, if a trader sets an MMR stop-loss order with a trigger of 110%, and the MMR suddenly drops from 113% to 100%, forced liquidation will occur first.
How to Set an MMR Stop Loss Order?
The MMR stop loss is a type of stop-loss order that is directly set on the position.
App Version:
1.Click on the position, then select "Take Profit/Stop Loss" and switch to the MMR stop loss tab to open the MMR stop loss setup page.
2.Set the threshold for the MMR stop loss, which can range from 110% to 900%. After confirming, the MMR stop-loss order can be viewed in the “Current Orders” under "Conditional Orders."
Note:
- The MMR stop-loss threshold must be lower than the current MMR value.
- The threshold can be set between 110% and 900%.
Final Explanation: This product is explained by DeeBit Exchange. For further assistance, please visit the official DeeBit Exchange support page or contact our customer service team.
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