What Are Margin Trading Terms

Margin account:

Each margin account represents a margin pair. For example, you will have a BTC/USDT margin account for BTC/USDT margin pair and you are able to transfer BTC and USDT from your spot account to your BTC/USDT margin account.


Transferred assets:

The assets you transfer from your spot account to your margin account.


Borrowed assets:

The assets that you borrow against the transferred assets as Margin.


Available assets:

Assets that can be used to open positions including both your transferred and borrowed assets.


Frozen assets:

The assets that are in your margin account but cannot be used to open positions.


Base currency:

Is the token against which exchange rates are generally quoted. In BTC-USDT pair, BTC is the base currency.


Quote currency:

Is used as reference to give us the relative value of the Base currency.In BTC-USDT pair, USDT is the quote currency.



Take BTC/USDT as an example, if you believe BTC price will rise, you can borrow USDT to buy long. That is, buy BTC at current low price and sell BTC at a higher price later to amplify your gains.



Take BTC/USDT pair as an example, if you believe BTC price will go down, you may borrow BTC and sell short. That is, sell at current high price and buy at a lower price later to benefit from drops in BTC price.


Risk Rate:

An indicator that evaluates the risk of liquidation in a margin account. It indicates the ratio of total account assets to borrowed assets. The higher the risk rate, the lower the loan ratio is, and the less chance the margin trading account will be forced liquidated.


Forced liquidation:

When the risk rate of a margin account is <105%, forced liquidation is triggered. All of the positions of this pair are closed automatically to prevent further loss and ensure you do not default on your loan.


Est. Liquidation price:

A calculated price when the risk rate equals to liquidation threshold. A forced liquidation will be triggered when the price reaches this value.