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.
There are six steps in total to complete a full set of Margin trade process: enable margin trade, transferring funds to margin account, borrowing more assets from the funding trading markets, margin trade, closing positions, and repaying loans. Click here to watch the Video guide.
How to enable margin trading?
- Log into the KuCoin official website: www.kucoin.com, click the "Trade" button in the menu bar, and click "Margin" to enter the margin trading area;
2. Click the "Enable" button in the lower right corner to enable margin trading.
Notice: KYC users in restricted countries and regions cannot enable margin trading;
Users with IP addresses in restricted countries and regions cannot enable margin trading;
Users in our blacklist cannot enable margin trading.
How to transfer funds to margin account?
KuCoin now supports 4v4 mutual transfers between accounts. You can click on the "Transfer" button on the Trade (spot/margin) interface, or click the "Transfer" button on the Assets (Asset Overview/Accounts) interface to transfer funds from other accounts to margin account. Take the trading interface as an example to show you:
1.Click the “Transfer” button;
2.Enter the quantity and token, and click confirm to transfer the tokens from other accounts to the margin account;
2.1 Drop down the box to choose the sending 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?
Method 1: You can directly select a trading pair on the trading interface (the trading pair must include the tokens you want to borrow), click the "Borrow" button to quickly borrow the tokens, and the market will borrow the number of tokens at the optimal interest rate;
Method 2：Users can also borrow tokens by the following process:
2.1 Click the "Earn" button, click "Lend";
2.2 Click “Borrow” and choose the token you want to borrow
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- Enter the maximum daily interest rate: the daily interest rate can only be selected from the lending market and can not be set at will;
- Entry the quantity: each token has a minimum and maximum borrowing quantity, and the amount you can borrow shall less than the maximum borrowing quantity of that token and up to 9 times the margin(principle);
- Click the "Borrow XXX" button to borrow tokens
Notice: The initial interest is calculated after the borrow is successful, and then it is calculated every hour afterwards. The final interest depends on your actual borrowing time, you can choose to repay the loans at any time.
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.
Note: you can also select the "auto-borrow" function to make a margin trade, the system will borrow the funds for you automatically when you place the order as long as there are available lend orders in the Funding market（Funds will be borrowed no matter the order has been filled or not）
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?
- Select the trading pair in the trading interface (the trading pair must include the token you want to repay), and click the "Repay" button;
- Choose the token you want to repay
- Repay rules: time priority principle: repay the first borrowed tokens first; interest rate priority principle: repay tokens with higher interest rates first;
- Quantity: enter the quantity you want to repay, if you want to repay all tokens, click "all", click the "Confirm" button to repay the token.
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