Margin

Introduction

Ⅰ. What is Margin Trading?

Margin Trading is a way of trading assets using funds provided by third parties. Compared to regular trading accounts, Margin Trading accounts allow traders to access more funds to support their positions. Essentially, Margin Trading amplifies trading results, allowing traders to make larger profits on profitable trades. Because the price of digital assets fluctuates greatly, it also bears a greater risk of loss, please be sure to fully understand the risks of Margin Trading and use it prudently.

Ⅱ. Judging that the currency price is rising, how to use leverage to double the profit?

Taking BTC/USDT as an example, it is assumed that the platform supports a maximum leverage of 3 times. When you judge that the Bitcoin price will rise from 10,000USDT to 20,000USDT, you have a principal of 10,000USDT, and you can borrow up to 20,000USDT from the platform.

You can buy 3BTC at 10000USDT with 30000USDT and sell it at 20000USDT, your profit=3BTC*(20000-10000)=30000USDT.If you only use your own 10,000 USDT to trade across the entire position, you can only make a profit of 10,000 USDT.Use 3x leverage to trade, and your profits will be tripled!

Ⅲ. Judging that the currency price is falling, how to use leveraged short to realize the fall and make money?

Take BTC/USDT as an example, if the platform supports up to 3 times leverage. When you judge that the bitcoin price will drop from 20000USDT to 10000USDT, you have a principal of 10000USDT (0.5BTC), you can borrow 1BTC from the platform, sell 1 bitcoin at 20000USDT, buy it at 10000USDT, and make a profit of 10000USDT. If you only trade with your own funds, you can only buy low and sell high, and you cannot be short.

Ⅳ. How to calculate the leveraged loan rate?

Interest is charged on a daily basis from the time of application for loan funds, and the loan principal and loan interest shall be repaid upon repayment.

Ⅴ. What are the risks of Margin Trading?

Margin Trading has the possibility of obtaining more income with less capital. But if the wrong trading direction is judged, the loss will also be magnified proportionally. Therefore, ordinary traders try to avoid heavy positions with high leverage to prevent liquidation or even breaking through.

Ⅵ. How to reduce the leverage risk ratio?

1. Reasonable use of leverage, Control positions.

2. Timely stop profit and stop loss, Spontaneous liquidation.

3. Make timely margin calls to ensure that the ratio of total assets/leverage quota is greater than 110%.

Rules

Ⅰ. Transaction rate

Consistent with spot trading, based on the specific rules of the exchange.

Ⅱ. How to calculate the risk ratio

Ⅲ. Leverage liquidation

Currently, only the isolated position mode is supported. When the risk rate of the leveraged account drops to 110%, the system will execute the liquidation.

Ⅳ. The users can apply for borrowing fund

The maximum loan that a user can apply for = net asset equivalent (USDT) × (multiple-1) - loaned assets, for example: if the platform supports a maximum leverage multiple of 3 times, the user can borrow 2 times the amount of digital currency.

The amount that can be transferred to the currency account = original amount - loan amount - unpaid interest （The Part greater than 0 can be withdrawn deposit）

Ⅴ.Maximum transferable amount

When transferring from a margin account, it is necessary to ensure that the risk rate after the transfer is not less than 200%, and the part exceeding 200% can be transferred out of the margin account.

Ⅵ. How to calculate interest

Interest is calculated at 0:00 every day, and interest = outstanding loan assets × daily interest rate × loan days (charged by day, less than 1 day will be calculated as 1 day). Example: Take BTC/USDT as an example, if the loan amount is 17000USDT, the loan time is 3 days, the daily interest rate is 0.04%, and a handling fee of 20.4 USDT needs to be paid.

Ⅶ. Leverage

The current maximum leverage is 3 times. For example, if you have 1 USDT, you can borrow 2 USDT. After borrowing, the account can use 3 USDT.

Ⅷ. Forced liquidation to place an order

When the user reaches the liquidation status (risk rate is lower than 110%), the platform will limit the user's transaction and cancel the user's current entrusted order.

The liquidation program will initiate a system liquidation order, and the liquidation will end after the loaned assets and interest on the arrears are returned.

After the user's position is liquidated, the account is in a risk-free state, and if there are remaining assets, it can be transferred out.

Ⅸ. When the account is overrun，How will the amount owed be calculated and repaid?

When the account is overrun, the loan account assets < loan assets + interest, and related arrears will be generated at this time: arrears amount = loan assets + interest - loan account assets.

Front-end page description

The overall process of the transaction is as follows: Log in to the account - click on the margin account - transfer funds - apply for a loan - leverage trading (long/short) - return the interest

The detailed tutorial is as follows:

Ⅰ. How to borrow money:

1. Log in to the official website of the exchange,log in to the account,into Margin Trading，Click to borrow, as shown in the figure below.

2. The balance in the Margin Trading wallet determines the amount you can borrow, which is to borrow at a fixed ratio of 3:1 (3x). So, if you own 1BTC, you can borrow another 2BTC. In this example, we have 100USDT and will be able to borrow up to 200USDT.

3.After confirming the loan tokens and loan amount，Click to borrow，You can check the relevant information in the loan record,As shown in the figure below.

4.The USDT you borrowed will be deposited into your margin trading account.After that, you can use the borrowed funds to trade and you also have a debt of 200USDT and the corresponding interest.The interest rate will be updated daily. You can see the available tokens and corresponding interest rates on the Margin Trading Fees page.

Ⅱ. How to trade with leverage

1. If you want to trade with funds obtained by borrowing, you can click to enter margin trading and select the trading coin pair on the far right side of the page. As shown in the figure below.

2. After selecting the trading currency pair, you can click the leveraged asset to view the asset status, and then choose to trade at the limit price or the market price

• [Buy means long]: If you find that the price of coins will rise, you can transfer the original funds to the leveraged account and borrow coins from the platform, then you can buy at low prices and sell at high prices, and then return the loan amount and interest to the platform, minus the original funds And the handling fee, the remainder is the profit of this transaction.

  When you go long, you need to borrow USDT from the platform,Because USDT is used to buy at a low price and sell at a high price to achieve profit.

• [sell means short]: If you find that the currency price will fall, you can transfer the original funds to the leveraged account and borrow coins from the platform. After selling at a high price and buying at a low price, return the loan amount and interest to the platform, minus the original funds and handling fees, and the remaining is the profit of the short trade.

  When you go short, you need to borrow the currency you want to short from the platform, Because it is necessary to sell at a high price and buy at a low price to achieve the purpose of profit.

3. When trading with leverage, please pay attention to your liquidation price and risk rate. The risk rate will change according to the market movement, so if the price goes against your prediction, your assets will be liquidated.As shown in the figure below.

4. If you want to repay your debt, you can click the button to enter the loan page, find the repayment currency, and click the "Return" option.As shown in the figure below.

The amount you need to pay is the sum of the total borrowed plus the interest.Before proceeding, your balance must reach the required amount.After preparing the required funds, select the tokens to be repaid and enter the amount, then click "Confirm Repayment".Also, please note that interest will be paid first and you can only repay with the same cryptocurrency.

Please note that,before repaying all the loan principal and interest, you have assets and liabilities. If you transfer funds from the margin account to the currency account, your risk level will increase as the funds in your margin account decrease.If your risk level rises to a certain height, your assets are likely to be liquidated. So before using this function, please make sure you understand the operating rules of Margin Trading.

Background description

Margin Trading switch

Configuration method: System Config → Basic Config → KV Config, the search key value is lever_open, As shown in the figure below.

After the margin trading switch is turned on, the front-end page will display the trading entry for margin trading, and the margin account will be displayed in the asset.

Configuration value: 1--on state; 0--off state (it will take effect immediately after editing is completed and "Publish Online" is clicked), As shown in the figure below.

Coin Pair Config

Configuration method: transaction configuration → currency transaction → currency pair configuration, click the Add/Edit button to enter the currency pair editing page, As shown in the figure below.

You need to change the two options of [Open Trading] and [Open Margin Trading] to [Yes]. After saving, you need to click the [Publish Online] button to make the modified configuration take effect.

Rule Config

Configuration method: transaction configuration→margin trading→leverage rule configuration, set leverage related rules.As shown in the figure below.

• Currency pair list: Display all currency pairs that have opened margin trading

• Leverage: Currently only supports 3x leverage by default

• Borrowing rate: The daily interest rate of the current currency pair

• Minimum loanable quantity in base currency: Set the minimum loanable amount of the base currency, the base currency changes according to the selected currency pair

• Minimum single return amount in base currency: Set the minimum single return amount of the base currency, the base currency changes according to the selected currency pair

• The minimum loanable quantity in the denominated currency: Set the minimum loanable quantity of the denomination currency, the denomination currency changes according to the selected currency pair

• Minimum single return quantity in denominated currency: Set the minimum single return of the price currency, the base currency changes according to the selected currency pair

Order

Margin order management can query all users' margin order information, As shown in the figure below.

Due to the large amount of order data, an automatic query will not be performed when entering the order page by default, so the page will prompt "Relevant data not found", you can enter the search criteria and click the [Query] button to query.

Instructions:

• You can be accurately inquired based on user ID, order number, mobile phone number and email, currency pair, order status, order type, order price, and order time.

• Order Type: All (Buy & Sell), Buy, Sell.

  • Order Status All: Orders with all statuses

  • Initial order: The entrusted order submitted by the user has not yet been merged into the market.

  • New order: an order that is already in the market queue and is already in the matching queue.

  • Completed transactions: All of transactions Order data

  • Partial deal: Only partially sold order data

  • Canceled:User orders that have been canceled

  • Pending: User after the cancels order, the order has not been removed from the matching queue

  • Abnormal order: Orders with abnormal transactions, such as: An order that fails the order transaction due to abnormal funds.

• Coin pair: Supports query order records by different currency pairs, and will open order record query for all currency pairs in the future.

• Operation

  • Expand: Click "Expand" for an order that has already been completed to query the transaction details of each transaction. The details include buyer and seller ID, transaction time, transaction quantity, transaction amount, transaction fee, etc.

  • Order export: Click Order Export by default to export order records (order data) that meet the query conditions (support export based on search conditions)