Spot Margin

Spot Margin - Borrowing is the core of margin trading

2023-05-30 10:250480

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Spot margin trading is a product that allows users to borrow more funds to trade by collateralizing their margin. It belongs to the branch of spot trading and shares the same order book as spot trading.

Advantages

  1. Provides users with more margin. Proper use of leverage can bring more potential profits to users in trading.

  2. Improves capital utilization. When users hold tokens and do not want to sell them, they can borrow other funds by collateralizing the tokens to further invest.

  3. Supports short selling of spot trading. When users are bearish on a certain token, they can borrow that token to sell high and buy low.

  4. More trading assets. Bitget continuously supplements the trading assets in spot margin, providing users with more tradable tokens.

  5. Bitget will distribute spot margin cut-rate coupons to users' accounts at random. These coupons can be used to borrow in margin at low or zero interest. Users can claim coupons via the Coupons Center. Click here to check and claim your coupon.

Borrowing method
1. Auto-borrow (recommended): Enabled by default. You can control the borrowing limit by adjusting the leverage.
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The system will automatically borrow the corresponding amount when placing an order.

2. Manual-borrow: If the user has not selected auto-borrow, they can manually input the borrowing token, quantity, and view the borrowing interest by clicking the "borrow" button.

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Note: The maximum borrowing limit is constrained by the leverage, the borrowing limit of each coin, and the total remaining funds in the loan pool. Exceeding these limits may result in a borrowing failure notification. If this occurs, adjust your trading amount and try placing the order again.

How to trade and profit

Long:Borrow stable coins to buy low and sell high, which is the same trading logic as spot trading.

Short:Borrow bearish tokens to sell and then buy back at a lower price for repayment.

Notes

  1. After making a profit or stop-loss, please remember to repay the borrowing, otherwise the borrowing interest will continue to be calculated.

  2. Spot margin trading can bring higher potential profits to users, but it also requires taking on the risks of borrowing. Therefore, please pay attention to your account's risk rate and set stop-loss orders in a timely manner.

Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users are strongly advised to do their research as they invest at their own risk.Thank you for supporting Bitget!



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