Disclaimer: Margin services are provided by OKCoin Technology Company Limited and are only available to residents in certain regions. Margin services are NOT available to residents in the United States, European Union, and Singapore. Please refer to the Margin Trading User Agreementfor more details and eligibility requirements.
You can borrow crypto from Okcoin with up to 10x your leverage. Your potential return is therefore multiplied, but so is your potential loss.
How does margin trading work?
With margin trading you can either long or short crypto.
When you go long crypto, you can use your principal plus the borrowed token to buy another crypto and sell it for a profit if prices rise. After repaying the loan and interest, the remaining amount is your profit.
When you short a token, you profit from prices falling by borrowing the crypto to sell it, and then buying back when its price drops.
How to Trade?
Start margin trading with 4 simple steps:
- Transfer funds from your Spot account to your Margin account
- Borrow crypto
- Margin trade
- Repay interest and principle
First, login to Okcoin and go to Trade. A pop-up window for our leverage trading user agreement will appear. Please read carefully and agree to the terms to continue.
- Transfer Funds from Your "Spot Account" to "Margin Account"
In your margin account, funds are segregated under different trading assets. Select Transfer from for the assets you wish to trade to move funds into your Margin account. Note that only supported assets will be shown in the selection tab.
An example of transferring ETH into ETH /USDT margin account.
On the Trade page, select a trading pair marked with "10X", and click Transfer to deposit your asset from your Spot or Funding account to your Margin account.
A transfer confirmation will pop up on your first-time using margin trading.
Select "5X Leverage" on your right to change your leverage.
Trading pairs with the "10X" or “5x” tag are the only pairs with leverage supported.
Your borrowing limit is up to 10x the total collateral amount available in the trading pair of your margin account.
For every trading pair there is two assets.
Let’s say we are trading BTC/USDT: you can borrow BTC to short BTC; or borrow USDT to buy BTC.
Your trading dashboard will update as prices change
Don’t forget to pay attention to your account once you open a position. You may close your position(s) whenever you prefer to stop loss or take profit. When your account's equity drops below its required maintenance level, it may trigger a forced liquidation. This is to make sure you won't lose more than your principal and to protect other traders
- Long ETH: Borrow USDT to buy ETH. When the price of ETH rises, sell ETH and repay the principal and interest in USDT, and the remaining amount will become your gain.
- Short ETH: Borrow ETH and sell. When the price of ETH drops, buy back ETH to repay the principal and interest, the remaining amount will become your gain.
4.Interest and repayment
Interest is incurred daily and can be repaid at any time. Repayment must be made in the crypto borrowed.
For repayment, click Repay and choose the asset you want to payback.
Fill in the repayment amount and click Submit to repay the loan.
- You pay interest hourly on your borrowed crypto.
- The interest rate is updated every 24 hours based on the demand and supply of the token.
- The interest rate is locked for the first 24 hours after borrowing. The rate will be updated every 24 hours afterward.
- Interest must be repaid every 7 days. There is no time limit for the loan.