Margin Trading Guidance

Margin Trading Guidance

Welcome to Hotcoin Margin – Spot area, below you will find the guidance to Hotcoin margin operation.

Login into your Hotcoin account, select Trading - Margin option and activate your margin account by answering the questions.

After your margin account is successfully activated, you can transfer assets from “Exchange” account to your margin account. Depending on your needs, you can choose between "Cross" and "Isolated" account modes. In “Corss-position” mode, the assets in cross -margin account can be used as trading margin, in isolated mode, you will have to transfer the cryptos of the transaction currency pair to the corresponding currency account before the trading.

After the assets are transferred to the margin account, you can do the borrow trade in two ways.

1、Auto- borrow: Select the Auto-borrow mode on the order placement page, at the moment your available balances is already the asset after enlarging the current leverage multiplier, and you can borrow the asset after the order placement is submitted .

2. Manual-borrow: Select the borrow option on the order placement page or Balance page.

On the asset borrow page, you can see the maximum amount you can apply for, enter the desired amount and click the [Confirm] button to complete the borrowing operation. You can check the interest rate and amount-limited information of this currency by clicking [View More].

1、Auto-repay: Select the Auto-repay mode on the ordering page, you can adjust the repayment amount by adjusting the number of orders placed, and the repayment will be completed after the order is filled. (The specific repayment amount will be affected by the transaction fee and the actual transaction situation)

2. Manual-repay: Select repay option on the ordering page or asset page, you can see the total amount you owe at that time as well as the maximum repayment quantity, enter the value and click the [Confirm] button to submit the repayment application, your asset will be updated after successful repayment.

In addition, it should be noted that the amount you need to pay is the sum of the total loan plus interest. The interest will be paid at first, and you can only use the same cryptocurrency for the repayment.

Example:

Frank assumes the price of BTC will keep rising, so he wants to buy more BTC through margin trading, then he needs to transfer assets to his margin account as deposit at first. For instance, if he transfers USDT as the deposited margin, then he can use USDT to borrow and then buy-in BTC, when BTC rises to his desired price, he will sell BTC to get more USDT for repayment, which means, after paying off the USDT debts, the rest will be his profit.

Margin trading is not only increases the gain but also may magnify the loss. Therefore, if the market trends does not acting the way Frank expected, then his losses will be greater.