What is leveraged trading?

Leveraged trading, also known as margin trading, is a method of borrowing third-party funds to conduct asset transactions. A leveraged trading account gives traders access to more capital than a regular trading account, allowing them to use leverage on their positions. In essence, leveraged trading amplifies trading results and increases the gains a trader can make from profitable trades.

In traditional markets, borrowed funds typically originate from investment brokers. In cryptocurrency trading, however, funds borrowed on leveraged exchanges are often provided by other traders, who charge a certain amount of interest on the margin based on market demand. Additionally, there are a handful of cryptocurrency trading platforms that offer margin to users.

How to trade with leverage?

Step 1: Log in and enter the margin trading page

Use a browser to open the Hotcoin official website, or download the Hotcoin App and open the App. After successfully logging in, click [Trade] and select [Margin Trading] to enter the margin trading page.

Step 2: Answer the questions and activate margin trading

Step 3: Transfer margin to margin account

After the successful opening, you can transfer the funds of the currency to the margin account. According to your needs, you can choose the two account modes of "cross margin" and "isolated margin". In the cross margin mode, the assets in your cross margin account will be equal to each other. It can be used as a trading margin. In the isolated position mode, you need to transfer the currency of the currency pair you are trading to the corresponding currency pair account before you can trade.

Step 4: Loan Transaction

After the funds are transferred to the margin account, there are two ways to conduct borrowing transactions.

1. Automatic borrowing (default): Select the automatic borrowing transaction mode on the order page. The system will automatically help you borrow and trade when placing an order. At this time, your available balance is already the assets magnified by the current leverage multiple. You can borrow assets after the order is successfully submitted.

2. Manual borrowing: Select ordinary borrowing on the order page or asset page, and all transactions follow the rules of spot transactions.

On the loan page, you can see the maximum loan amount you can apply for. Enter the expected loan amount and click the [Confirm] button to complete the loan operation. You can click [View] the interest and limit information of this currency.

Step 5: Repayment Transaction

When you need to repay, you can use the following two methods:

1. Automatic repayment: Select the automatic repayment transaction mode on the order page. After the order is placed, the system will automatically use the currency you received to repay. The repayment amount can be adjusted by adjusting the order quantity, and the repayment will be completed after the order is completed.

2. Manual repayment: Select repayment on the order page or asset page. You can see the total amount you owe and the maximum repayment amount at that time. After entering the value, click the [Confirm] button to submit the repayment application. After the repayment is successful, you will Update your assets.

It should be noted that the amount you need to pay is the total amount borrowed plus interest. The interest will be paid first and you can only repay using the same cryptocurrency.