Spot margin trading
Spot margin trading allows you to borrow assets to trade, enabling you to amplify your buying or selling power. Compared with regular spot trading, margin trading allows you to control a larger position with less capital, but also increases the potential risk of loss.
Example: You have 1,000 USDT and use 3x leverage. In this case, you can trade assets worth up to 3,000 USDT. The additional 2,000 USDT is borrowed from the platform's lending pool and is subject to interest charges.
Overview of auto-borrowing
For supported assets, the platform provides automatic borrowing during order placement and fund transfers. When an order or transfer results in an insufficient available balance of a supported asset, the system will automatically borrow the required amount from the lending pool to ensure immediate order execution or successful transfer, without requiring users to manually initiate a loan.
For assets that aren't eligible for borrowing, a user's cumulative sell amount (including open orders) and transfer-out amount can't exceed the available asset balance. In other words, these assets only support regular spot trading and transfers without borrowing.
Spot margin trading rules
Spot margin trading rules include parameters, such as the minimum order size and price precision. For a full list of parameters, refer to the Trading guide – Spot margin trading rules. The following table shows illustrative trading rules:
- Click here to view the latest data.
Trading pair |
Min order size |
Price precision |
Min order price / tick size |
Limit order price cap / floor ratio |
Max market / limit order amount |
Market order price cap / floor ratio |
Max open orders |
Min notional value |
Margin market availability |
BTC/USDT |
0.0001 |
0.1 |
5 USDT |
3% / 3% |
1,500,000 / 10,000 USDT |
3% / 3% |
500 |
10 |
Yes |
ETH/USDT |
0.002 |
0.01 |
5 USDT |
3% / 3% |
1,500,000 / 10,000 USDT |
3% / 3% |
500 |
5 |
Yes |
Margin tier rules
The platform adopts a tiered margin system. Each tier has different limits for the maximum borrowable amount, maximum available leverage, and maintenance margin ratio.
- The higher the leverage, the lower the maximum borrowing limit.
- The larger the outstanding borrowed amount, the higher the applicable maintenance margin ratio.
Click here to view detailed information regarding margin tier rules.
Borrowing limits
- Account borrowing limit:
A user's initial margin ratio can't exceed 100%. In other words, the total liability value of your account can't exceed its equity. In the case that this happens, no additional borrowing will be allowed.
- Asset borrowing limits:
To mitigate liquidity risks and market manipulation risks, borrowing limits are established for each asset. A user's actual liabilities can't exceed the borrowing limit of the highest tier. For example, the liability value of BTC borrowings can't exceed 1,000,000 USDT.
- Platform borrowing limits:
When the total amount borrowed from the platform's lending pool exceeds the designated limit, users will no longer be able to place new sell orders that require borrowing, nor will they be able to transfer assets through borrowing. Existing positions and open orders won't be affected or canceled.
Borrowing interest rates
Borrowing interest rates follow a floating-rate mechanism and are calculated as follows: Interest rate = Base rate + (Utilization factor × (Current utilization rate − Threshold)).
- Base rate: The minimum hourly interest rate set by the platform.
- Current utilization rate: The proportion of borrowed assets relative to the total assets available in the lending pool.
- Threshold: When the utilization rate is below this threshold, the applicable interest rate equals the base rate.
- Utilization factor: The rate adjustment factor that determines how quickly the interest rate increases once the utilization rate exceeds the threshold.
Update frequency: Interest rates are updated automatically once every hour. The exchange reserves the right to make temporary adjustments during periods of extreme market volatility or abnormal liquidity conditions.
Interest accrual: Interest is accrued and settled on an hourly basis.
For real-time interest rates and parameters for each asset, refer to the Fee schedule page.
Repayment
Manual repayment: The system will automatically use the corresponding asset to repay the outstanding loan without requiring any additional action.
Automatic repayment: Automatic repayment may be triggered when the borrowed amount exceeds 100% of the user's individual borrowing limit, or when the total borrowed amount in the platform's lending pool exceeds the platform borrowing limit.