What Does Margin Ratio Mean?

Margin Ratio is a single number that shows how close your Crypto Futures account is to liquidation, based on your maintenance margin requirement relative to the margin you have available. It's expressed on a rising scale from 0% to 100%+: a low reading means you have a healthy buffer, while a high reading means your account is approaching margin call and liquidation territory. Think of it as a real-time health gauge for your open positions rather than a fixed number you check once — it recalculates continuously as market prices move and as your margin balance changes. For example, if your account shows a Margin Ratio of 20%, you have a wide cushion; if it climbs to 60%, you've already crossed into warning territory. Margin Ratio is the single metric Pluang uses to decide when to issue a margin call and, eventually, when to liquidate a position, which is why understanding what the number itself means — beyond just the formula behind it — is central to managing risk in perpetual trading.

• Margin Ratio is calculated as Total Maintenance Margin divided by the sum of Available Margin and Total Maintenance Margin, giving a percentage rather than a raw dollar figure.
• It rises when your available margin shrinks — either because a position is losing money, because you're carrying more open positions, or both at once.
• Pluang uses Margin Ratio as the metric that triggers margin call warnings and, eventually, liquidation, so it's the number that matters most, more than unrealized PnL alone.
• Checking your Margin Ratio regularly, especially during volatile markets, is a quick way to gauge how much room your account has left before facing restrictions.
• A Margin Ratio near 0% signals a strong buffer with plenty of room to absorb price swings, while a ratio climbing past 50% signals it's time to actively manage your positions.

Related questions:

Q: What does a high Margin Ratio mean?
Your account is getting closer to a margin call or liquidation — it's a signal to add margin or reduce your position size before the ratio climbs further. A high Margin Ratio doesn't mean you've already been liquidated, but it does mean your buffer has narrowed significantly and needs attention soon, especially if the market is moving against your position.

Q: What does a low Margin Ratio mean?
You have a healthy buffer between your current margin and the maintenance margin required to keep your positions open, meaning there's meaningful room before any warning triggers. A low ratio gives you flexibility to add positions or ride out short-term volatility without immediately risking a margin call, though it can still rise quickly during fast market moves, so a low reading today isn't a guarantee it stays low tomorrow.

Q: What's the formula for Margin Ratio?
Total Maintenance Margin divided by the sum of Available Margin and Total Maintenance Margin, expressed as a percentage. Both inputs update continuously as your open positions gain or lose value, which is why Margin Ratio moves even if you haven't placed a new order, and why it can shift faster than you might expect during sharp price swings in either direction, up or down.

Q: Where can I check my current Margin Ratio?
It's shown alongside your open positions in the Crypto Futures section of the Pluang app, updating in real time as prices move. Checking it regularly, rather than only when you open or close a position, is the simplest habit for catching a rising ratio before it reaches a margin call threshold, especially if you're holding several open contracts at once.