Margin trade means that users could borrow more digital assets by holding digital assets on KuCoin as their principal, and make long (buy) or short (sell), so as to use small funds to leverage large funds and earn more revenue. For example, if you hold 10 USDT in KuCoin, after borrowing 20 USDT, you have 30 USDT available for margin trade. If the investment strategy is appropriate, margin trade can essentially magnify the gains for traders.
Completing a set of margin trade processes is divided into six steps in total, namely: opening margin trade, transferring principal (margin) to a margin account, borrowing more assets from the margin trading markets, trading, closing positions, and repaying currency.
How to open margin trading?
Log in to the KuCoin App, click the "Trade" button, and click "Margin" to enter the margin trading area; click the "Go margin trading" button in the lower right corner to open margin trading
Notice: KYC users in restricted countries and regions cannot open margin trading;
Users with IP addresses in restricted countries and regions cannot open margin trading;
Users in our blacklist cannot open margin trading.
How to transfer the principal (margin) to a margin account?
1. Click the “transfer” button;
2. Enter the quantity and token, and click confirm to transfer the tokens from the main account or trading account to the margin account;
2.1 Drop down the box to choose the main account or trading account;
2.2 Select the token you want to transfer to the margin account from the drop-down box (only tokens supported in margin trading can be transferred);
2.3 Enter the amount you want to transfer to the margin account
How to borrow more tokens?
1. Select the trading pair (the trading pair must contain the tokens you want to borrow), click "Borrow/More"
2. Click "Borrow" button:
3. Select the token you want to borrow, enter the amount, select the period and the maximum daily interest rate, click "Confirm" to borrow, and you can see the corresponding debt ratio;
Notice: The interest is calculated for the first time after the borrowing is successful, and the interest is calculated every hour after that
How to trade?
Select the trading pair you want to trade, exchange the borrowed token for another token;
For example, if you borrow USDT and think that BTC will rise, so you trade USDT for BTC, choose BTC/USDT trading pair and buy BTC with the borrowed USDT. Please click here for the specific model of margin trading.
How to close your position?
Also on the margin trading, trade the tokens you borrowed again. For example, if you buy BTC with the borrowed USDT, you only need to sell the BTC to exchange it back to USDT, which is the closing of the position.
How to repay?
1. Select the trading pair (the trading pair must include the tokens you want to repay), click "Borrow/More";
2. Click " Repay"
3. Select the token you want to repay and enter the amount (If you want to repay all tokens, click "All"), click the "Confirm" button to repay the token. Then you can see that the debt ratio has been refreshed to 0%.