Margin trading is a tool that involves the use of third-party funds to increase the capital used for making deals. The larger the deposit amount, the greater the profit potential. You can read about margin trading in detail in our previous article.
Thanks to the upgraded functionality of Margin trading, managing the trading process on our exchange has become even more convenient. If earlier it was possible to trade with up to 5x leverage, now we have increased it to x20! Read the details below.
How to find the Margin trading section?
- Log in to your account on the exchange and open the Trade section in the upper left corner. Select “Margin” from the drop-down list.
- You will be redirected to the professional trading page, where you will see the Spot and Margin blocks in the lower right corner. Click “Margin” to see the drop-down list of leverage to choose from “1x”, “2x”, “3x”, “5x”, “10x”, and “20x”.
How does leverage work?
Let’s consider an example of trading with 2x leverage. Let’s say the cost of 1 BTC is 10,000 USDT. You have 5000 USDT but want to buy 1 BTC. You can apply 2x leverage, get an additional 5000 USDT, and buy 1 BTC. Next, you should wait until the price of 1 BTC increases, say, to 11,500 USDT, and place a sell order. Your profit will be 1500 USDT (trading fee not included). This is an example of opening a long position, waiting for the price to rise.
In turn, trading with 1x leverage means that borrowed funds are not used, but funding* may be accrued depending on the position and the market.
*Funding is a dynamic fee that is charged for the use of borrowed funds.
The 3x, 5x, 10x, and 20x leverage work in the same way, increasing your own funds by 3, 5, 10, and 20 times. For example, if you have 100 USDT and want to trade with the 10x leverage, you can use 1000 USDT to make a deal.
Features of trading with leverage
- The chosen leverage affects all positions and margin pairs. You cannot set different leverage for different markets.
- If you have open positions and enough funds to change leverage, then this leverage will be applied to all of your open positions.
- If you have insufficient funds to change the leverage, you will receive a corresponding message.
- Go to the Account tab, open “Account settings”, and click “General” to change the leverage.
By trading with borrowed funds, you get the opportunity to increase your profit from up to 20 times. Try the upgraded functionality now and start multiplying your crypto income!
WhiteBIT Team
