What is Margin Trading?
Margin trading is a trading method based on spot trading. Margin trading involves using third-party funds to go long or short on an asset. If the net balance of the asset being sold is insufficient, the platform will automatically lend the asset, and other assets in the trading account will serve as collateral.
Margin Trading Fees
Margin trading charges three types of fees: spot trading fees, interest, and liquidation fees.
Trading Fees
When you buy or sell margin positions in the spot market, you will be charged a fee. The fee is the same as for spot trading and is automatically deducted from the purchase price.
Interest
Margin trading interest is calculated hourly. You can repay the loan at any time and pay interest based on the actual borrowing time. Please note that the interest rate fluctuates hourly. Different VIP levels have different daily and annual interest rates.
Forced Liquidation Fees
When a user's position is forced liquidated, the system will charge a percentage of the forced liquidation fee, which will be deposited into the insurance fund reserve and marked as [Forced Liquidation] in the transaction history.
If a user experiences a margin call, meaning their account lacks sufficient margin to cover their debt, the platform will use the Margin Insurance Fund to cover their losses. Simply put, the Margin Insurance Fund covers losses incurred by users in the event of forced liquidation due to insufficient margin to repay their loans.
How to Calculate Borrowed Interest
Interest earned on interest-bearing liabilities is recorded every hour, with interest deducted hourly from 0:00 am. Interest rate update frequency: Automatically updated every hour. The exchange reserves the right to make temporary adjustments in the event of extreme market volatility or liquidity abnormalities.
Comments
0 comments
Article is closed for comments.