Margin trading is a trading method of gaining more profits by borrowing assets and amplifying the trading amount.
The whole process of margin trading：Open margin trading account-Assets transfer-Apply to borrow-Margin trading (Buy/ Long or Sell/Short)
Step 1: Open the margin trading account
Login your MXC account by visiting www.mxc.ai, click “Margin”-“Standard” or “Professional” version, and agree to the Margin trading agreement to confirm opening the margin trading account.
Step 2: Assets transfer.
The two tokens of the trading pair can be transferred to the margin account as the collateral assets. Here takes the BTC/USDT margin trading pair as an example. Please click “Transfer” to open the assets transfer pop-up window, and select the token and “Quantity” you want to transfer, and then click “Transfer”.
Step 3: Apply to borrow.
Users can borrow coins after the collateral assets are successfully transferred to the margin account. Please click “Apply to borrow” in the “Normal” mode. The system will display a certain multiple of the available borrow quantity based on the transferred amount. Users can apply the borrow amount according to their needs. Please enter the “ Borrow Quantity” and click “Borrow”.
Step 4: Margin trading(Buy/Long or Sell Short)
Users can make margin trading after applying the borrow, here takes the Buy/Long and Sell/Short as examples.
User needs to borrow the USDT from the MXC when buy/long, because the user needs to gain profits by buying USDT with lower price and selling USDT with higher price. Here takes buy/long BTC as an example.
Users can choose “Limit Order”, “Market” or“ Stop-Limit” in “Normal” or “Automatic” mode to buy/long BTC.
When the price of BTC goes up to the expected price, user can sell/short BTC by “Limit Order”, “Market” or “Stop-Limit”
The above are the steps to buy/long BTC.
The user needs to borrow the token that he wants to sell from the MXC when sell/short, because the user shall gain profits by selling at a higher price and buying at a lower price. Here takes sell/short BTC as an example.
Users can choose “Limit Order”, “Market” or“ Stop-Limit” in “Normal” or “Automatic” mode to sell/short BTC.
When the price of BTC goes down to the expected price, users can buy BTC at a lower price in margin trading to repay the borrowed BTC amount and interest.
Sell the borrowed BTC at a higher price and buy BTC at a lower price to repay the borrowed BTC amount and interest. The larger the difference in price, the more gains the user will get.
Step 5: Apply to repay.
Please click “Assets”- “My Assets”- “Margin Account” when you need to repay the borrowed token and the interest. Please click “Repay”, and choose the order and enter the “Repay Quantity” , and then click “Repay”. Please transfer the corresponding tokens into margin account when the available amount is not enough to repay the borrowed amount and interest in time.
The instruction of “Automatic” mode on Margin Trading
In the automatic mode, the user does not need to manually borrow/repay the coins. The system will automatically determine whether the user needs to borrow the coins based on the user's available assets and the number of orders. When the user's order amount is greater than the current available assets, the system will automatically borrow the coins for the user and place the order, and interest is calculated at the same time; if the user cancels the order when the order is not filled or partially filled, the system will automatically repay the coins to reduce the interest generated from unused borrowed assets.