[Web] Margin Trading – OKEx Official & OKB English Group
Spot trading is the purchase or sale of tokens for immediate delivery. You can earn the differences by exchanging between tokens.
While Margin trading uses leverage to maximize the potential return in token trading.
You can borrow tokens from OKEx, executing positions with 3–10 times of your capital. Your potential return is therefore multiplied, but so is your potential loss.
How Token Margin Trading Works?
Long a token: You can use your principal plus the borrowed token to buy another token and sell it whenl its price rises. After repaying the loan and interest, the remaining amount is your multiplied gain.
Short a token: In contrary to “buying before a rise” and “selling before a fall”. You can gain from a price fall. Borrow the token whose price you expect to fall, sell it and then buy back when its price drops to repay the loan and capture the price difference.
You can also arbitrage or hedge exposure in combination with futures or perpetual swap trading.
Advantages of OKEx Margin Trading
Hourly interest
The rate is adjusted dynamically every hour
High flexibility to suit your trading strategy
Multiplied Return
2–10x leverage with controlled risk
How to Trade?
Start Token Margin Trading with 4 simple steps:
- Transfer funds from your “Spot account” to “Margin account”
- Borrow tokens
- Margin Trade
- Interest and repayment
1、First, login to OKEx and go to Margin Trading. Transfer Funds from Your “Funding Account”(any other account is also fine) to “Margin Account”
In your margin account, funds are segregated under different trading pairs. Select “Transfer to” of the pair you wish to trade to move funds. Note that only supported trading pairs will be shown under the tab.
2、Borrow Tokens
Beside “Margin”, select “10X Leverage” on your right to switch different leverages.
Trading pairs with the “3–10 X” tag are the ones with leverage supported. Above, the grey box shows a brief summary of your assets of the pair.
Borrowing limit: 1–9x the total token amount available in the trading pair of your margin account. You can trade with up to 10x of your capital(Limited to certain pairs: 10X-BTC/USDT, ETH/USDT, EOS/USDT, ETH/BTC, EOS/BTC).
Trading pair: the denominator is the base token; the numerator is the quote token.
Let’s say we are trading BTC/USDT: you can borrow BTC to short BTC; or borrow USDT to buy BTC.
3、Trade
Trading example:
To long BTC: Borrow USDT to buy BTC. When the price of BTC rises, sell BTC and repay the principal and interest in USDT, and the remaining amount will become your gain.
To short BTC: Borrow BTC and sell. When the price of BTC drops, buy back BTC to repay the principal and interest, the remaining amount will become your gain.
Don’t forget to pay attention to your account once you are holding any position. You may close your position(s) whenever you prefer to stop loss / take profit. But when your account’s equity has dropped to a certain level, it may trigger a forced liquidation. This is to make sure you won’t lose more than your principal.
4、Interest and repayment
Interest is incurred daily and can be repaid at any time. (repayment must be made in the token borrowed)
For repayment, select “repay” and enter the amount.
Select an existing margin account, click “repay” on the right, fill in the repayment amount and click “Submit” to repay the loan.
Description:
- An hourly interest rate system is adopted to lower the borrowing cost.
- The interest rate is updated every hour based on the demand and supply of the token.
- The interest rate is locked for the first 24 hours after successful borrowing. The rate will be updated every 24 hours afterward.
- The interest must be repaid every 7 days. There is no time limit for the loan.
For the detailed rules, please refer to:
Published at Wed, 08 Jan 2020 04:06:33 +0000
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