Crypto derivatives exchange BitMEX has launched Margin+, an exclusive programme aimed at allowing professional traders to tap the current bullish market sentiment by expanding their positions without the need to bolster their accounts with extra capital.

According to a press release, Margin+ offers extra tether or bitcoin as collateral to help BitMEX’s top traders execute larger positions and orders without the need for additional capital. Margin+ is most suitable for non-directional traders whose strategies involve taking larger positions or placing more frequent trades to grow their PnL.

So far, a number of eligible participants have received invitations to join. Further applications for the programme will be subject to BitMEX approval.

Traders opting for Margin+ are required to meet specific trading obligations to ensure responsible trading practices, prevent margin calls, and safeguard against liquidation. The obligations include maintaining a minimum balance and adhering to Maintenance Margin Ratio (MMR) standards. The minimum balance requirement is set at 30% of the Margin+ collateral value. Falling below 125% of the collateral value triggers a margin call, whilst dropping below 110% results in liquidation.

The MMR ensures that traders maintain a healthy balance between available funds and the maintenance margin requirement. Traders need an MMR of 12 or above to proceed with the drawdown. A drop below 10 for over 12 hours or below five leads to a margin call or immediate liquidation.