Once you have enabled margin trading, there are 4 steps you must know to complete a margin trade:
1.Transfer principal to your margin account
Note: Any currency supported on Margin trade can be transferred.
2.Borrow funds from the Funding Market
3.Margin trade (Buy long/Sell short)
Trade: Let's buy long using BTC with the BTC/USDT trading pair as an example, using the borrowed USDT to buy BTC.
Close position: When the BTC price goes up, you can sell the BTC you bought before back to USDT.
Note: A margin trade works exactly the same as a spot trade and they share the same market depth.
Repay all the borrowed USDT as well as the interest. The remaining amount is the profit.
|Can I use other tokens to repay the borrowed USDT?||What if I don’t repay after borrowing?|
You can only repay what you borrowed instead of using other tokens to repay. If your margin account does not have enough USDT to repay, you may sell other tokens to USDT, and then click the Repay button to repay.
The system will execute the auto-renew procedure.
When the borrower's debt is about to expire, the system will automatically borrow the same amount of the corresponding debt assets (which equals the remaining mature debt’s principal and interest) to continue the debt if there are insufficient corresponding assets in the borrower's account.
Kind reminder: This article is based on buying long in a margin trade. If you think that the specific token will go down, at step 2, you can borrow that token then sell it short at a higher price, then buy it back at a low price to make a profit.