CoinEx Margin Trading Guide

What is Margin Trading?
Margin trading refers to the practice of magnifying your actual funds with potentially amplified gains or losses. Please fully understand its risks before engaging in Margin Trading as the crypto market often swings drastically.

What are the risks in Margin Trading?
Margin Trading not only allows you to magnify gains with fewer funds but can also saddle you with amplified losses when the market moves against you. Therefore, we strongly advise entry-level users not to use highly leveraged trading to avoid forced liquidation or even bankruptcy.


What can I do to lower down forced liquidation risk?
1) Reasonably leverage in Margin Trading and adjust your positions

2) Learn when to take profits or cut losses by liquidating your positions.

3) Add margin on your positions in time and make sure the ratio between Total Assets against Leverage is above 110%.


Description for Margin Trading Page:

1. Search bar and market area
2. Trading pair and basic market information
3. K-line market and depth chart
4. CET deduction and Auto Repayment area 
5. Margin introduction and market selection area
6. Margin trading pair information area
7. Order placing area
8. Proportion of buying & selling
9. Market handicap depth area
10. Trade history area
11. Current orders area
12. Orders history area

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How to use margin to magnify gains if you think the price will go up?

If you judge the price of BCH will rise and long buy, you need to borrow USDT from the platform, and then use principles plus the borrowed USDT to buy BCH at a lower price. When BCH price rises to the expected price, you can sell it at a higher price, return the borrowed coins and interests to make profits. 

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Take 100 USDT and 5X margin for long BCH as an example:

Step 1: Check trading pairs supported 

1. Visit CoinEx official website http://www.coinex.com, and after successfully logging in to your account, click [Exchange] on the top.

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2. Tick the [Margin] option in the market display area to check and select trading pairs supported, click [Margin Trading] in the market selection area.

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Step 2: Transfer assets to a margin account

Click [Transfer] on the margin trading page, select [From Spot Account to Margin Account], choose [USDT] coin type, set the [Amount] and click [Submit] to complete the transfer.

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Step 3: Borrow USDT

Click [Borrow], select [USDT (Long Buy)], check [Automatic renewal] (enabled by default), enter the loan [Amount] and click [Confirm] to complete the loan.

Reminder: When the principal is 100 USDT, and you borrowed 400 USDT, which means the total is 500 USDT. That is, the principal is increased 5X margin.

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Step 4: Buy BCH at a lower price. (Take a limit order as an example here)

Use 500 USDT to buy 1.19797007 BCH at a price of 431.85 USDT in the BCH/USDT margin trading market to complete the buy/long.

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Step 5: Sell BCH at a higher price. (Take a limit order as an example here)

If the price of BCH rises to 450 USDT, sell 1.19797007 BCH in the BCH/USDT margin trading market to get 539.0865315 USDT for repayment.

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Step 6: Return the borrowed coins and interests

Click [Repayment] on the margin trading page, select [USDT], enter [Paid amount] and click [Confirm] to complete the repayment.

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Step 7: Transfer margin assets to spot account

Click [Transfer] on the margin trading page, select [From Margin Account to Spot Account], choose [USDT] coin type, set the transfer [Amount] and click [Submit] to complete the transfer.

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Risk warning:
Margin Trading not only allows you to magnify gains with fewer funds but can also saddle you with amplified losses when the market moves against you. Therefore, we strongly advise entry-level users not to use highly leveraged trading to avoid forced liquidation or even bankruptcy.

 

Related articles:

How to Long Buy on Margin Trading?

How to Sell Short on Margin Trading?

Margin Trading Risk Alert

Use CET as Transaction Fees

Order Types

What is Maker & Taker?

Rules of Depth Merger

Rules of Minimum Order Limit

VIP Discount

Margin Trading Loan Interest Description