Margin Trade refers to a trade mode in which users borrow a certain amount of digital tokens by pledging digital tokens in KuCoin to make a long (buy) / short (sell) operation, so as to leverage large funds with small funds to earn more profits.
Trading Area: Easy to check the Debt Ratio, complete operations of borrow/repay, place orders, and transfer funds of the current account.
Order Area: You're available to check the status of your orders: Open Orders, Stop Orders, and Order History.
Assets Overview: On this page, you're able to check the assets details of all the accounts, as well as other functions such as Deposit, Withdraw, Transfer, and Lend.
Four steps to Margin Trade:
Here you go:
1. Transferring funds to Margin Account
1.1 Click the transfer button “⇌” on Margin Trade page to transfer funds from Main/Trading account to Margin account.
Click Borrow/More—Transfer —choose the receiving account as Margin account to transfer funds from Main/Trading account to Margin account.
1.2 Click Assets—Transfer—choose the receiving account as Margin account
2. Borrowing funds
With Auto-Borrow function enabled, once the balance is insufficient, the system will borrow funds automatically with the most efficient rate from the market when you place a Margin trade order.
Furthermore, you can check the max amount for borrowing and the max amount for trading on the 2nd-page shows below.
2.2 Borrow Manually
With Auto-Borrow function disabled, you need to borrow the funds manually on the Borrow page before order placing by Click Trade—Margin—Borrow/More—Borrow and Select the coins and fill the Interest Rate, Amount, Terms to borrow the coin.
3. Margin Trade
【Buy Long】: If the expectation is that the token price will rise, transfer funds to the Margin account, borrow token, purchase target token at a lower price, sell at a higher price, repay loan and loan interest and earn the price differential. In the case of Buy Long, borrow USDT to purchase token at a low price and sell at a higher price to earn a profit.
【Sell Short】: If the expectation is that the token price will fall, transfer funds to the Margin account, borrow token, sell target token at a higher price, buy at a lower price, repay loan and loan interest and earn the price differential. In the case of Sell Short, borrow the target token (e.g. BTC) to sell token at a high price and purchase at a lower price to earn a profit.
With Auto-Repay function enabled, the system will scan the account per 30 minutes and repay the borrowing tokens if there are available tokens in the account.
4.2 Repay manually
Step 1. Click Trade—Margin—Borrow/More—Repay
Step 2. Select the coin and amount you want to repay, and choose Repayment Rules
Step 3. Warm notice: It is important to repay token and interest on a timely basis to avoid unnecessary charges.
Margin trade refers to the practice of borrowing funds with a relatively lower amount of capital to trade financial assets and obtain bigger profits. However, due to market risks, price fluctuations, and other factors, you are strongly recommended to be prudent about your investment actions, adopt an appropriate leverage level for margin trading, and properly stop your losses in a timely manner. KuCoin assumes no responsibility for any losses arising from the trade.