Margin Trade refers to a trade mode in which users borrow a certain amount of digital tokens by pledging digital tokens in KuCoin to make a long (buy) / short (sell) operation, so as to leverage large funds with small funds to earn more profits.
Only Four steps to Margin Trade:
Here you go:
1. Transferring funds to Margin Account
1) Click Trade—Margin—Borrow/Repay—Transfer —choose the receiving account as Margin account
2. Borrowing funds
1) Click Trade—Margin—Enable Margin Trade（if haven't done）—Borrow/Repay—Borrow
2) Select the coins and fill the Interest Rate, Amount, Terms to borrow the coin
3. Margin Trade
【Buy Long】: If the expectation is that the token price will rise, transfer funds to the Margin account, borrow token, purchase target token at a lower price, sell at a higher price, repay loan and loan interest and earn the price differential. In the case of Buy Long, borrow USDT to purchase token at a low price and sell at a higher price to earn a profit.
【Sell Short】: If the expectation is that the token price will fall, transfer funds to the Margin account, borrow token, sell target token at a higher price, buy at a lower price, repay loan and loan interest and earn the price differential. In the case of Sell Short, borrow the target token (e.g. BTC) to sell token at a high price and purchase at a lower price to earn a profit.
2) After borrowing funds, you can trade with trade pairs from the top left corner on Margin Trade page.
3）Once the price falls or rises to the target level, buy back the token in the Margin tab at a lower price or sell the token at a higher price and repay the loan + interest on loan. The rest of the token is your profit.
1) Click Trade—Margin—Borrow/Repay—Repay
2) Select the coin and amount you want to repay, and choose Repayment Rules
3) Warm notice: It is important to repay token and interest on a timely basis to avoid unnecessary charges
Margin Trading uses a fraction of assets to potentially earn a bigger profit. Whilst accurate prediction of future price movements can allow you to earn a higher profit if the market moves in the wrong direction, the loss will be correspondingly bigger. As such, ordinary users should avoid taking on highly leveraged trading positions to avoid liquidation of assets.