Under token trading page, select the trading pair tagged with "3X" and click "3X Leverage" on the right side to enter leverage trading.
This article aims to provide a glossary to explain all the commonly used terms in leverage trading.
Total Assets: The total sum of tokens in your Margin Account for Spot, including Available Assets and Assets on Hold.
Transferred Assets: The amount of tokens transferred from other accounts to your Margin Account for Spot.
Borrowed Assets: Total Borrowed amount of tokens in Margin Account for Spot as collateral.
Available Assets: The total amount of tokens available for trading in Margin Account for Spot, or Transferred Assets plus Borrowed Assets.
Assets on Hold: The amount of tokens which is unavailable for creating orders, usually refers to the tokens that are currently in use for open orders.
Borrowing Limit: Maximum quantity of token available to borrow of the corresponding token pairs. OKCoin determines borrowing limits for users with maximum leverage and other risk parameters.
Maximum Leverage Formula: Max Leverage = (Total Assets - Borrowed Assets - Interest) * (Maximum Leverage Multiplier - 1) - Borrowed Assets
Maximum Leverage Multiplier refers to the maximum amount of leverage available, currently 3X (3) on OKCoin.
Risk Ratio & Forced Liquidation
Margin ratio: The indicator for evaluating margin account's possibility of triggering forced liquidation. When the margin ratio ≥50% under 3X leverage, the surplus balance can be transferred out to Spot Account. When margin ratio is ≤20%, it indicates a high-risk status. The system will notify the user automatically via SMS. When margin ratio is ≤10%, forced liquidation will be triggered and SMS will be sent to notify the user.
Margin Ratio Formula: Margin Ratio = (Total Assets - Borrowed Assets - Interest) / Borrowed Assets * 100%
In the formula below, 'Base' indicates the base currency and 'Trading' indicates the cross or trading currency. In BTCUSD, BTC is the base currency and USD is the cross or trading currency.
Margin Ratio Formula (Detail): Margin Ratio = [((Total Assets Base – Borrowed Assets Base – Interest Base) * Last Trade Price) + (Total Assets Trading – Borrowed Assets Trading – Interest Trading)] / [(Borrowed Assets Base * Last Trade Price + Borrowed Assets Trading) * 100%]
Short Selling: Selling of tokens which the user borrows, and will buy back after a period of time.
Interest & Repayment
Interest Computation: Interests would be computed and incurred per each borrowing instruction. Interests would then be incurred once after the borrowed order is accepted and accrued per 24-hour intervals. Interests payable is compounded to next terms on each 15 days (unpaid interests expense would be computed as principal and thus incurring compounded interests).
Repayment: Repayments will be used to cover the earliest loan orders, and pay off interest before principal. The repayment status will change to completed once all the debts have been paid off, then further interest will not be applied for the order.