1. What is the margin trading?
Margin trading is the transaction which using the small of funds to make investment --several times the original amount--to obtain the multiple on relative currency fluctuations. FCoin users can borrow BTC, ETH, USDT through margin accounts to go short or long, but if they misjudge the trend of currency fluctuation, they will incur greater losses, margin trading has higher risks, and users need to invest cautiously.
2. How to margin trading
(1) Open margin trading
Method 1: Click [MARGIN ACCOUNT]--[Apply To Open] in account module, check “I had read and understood the risks and rules explanation of the margin trading” and click “Open Now” to apply for the corresponding margin trading account.
Method 2: Click [MARGIN] in the upper left corner of the trading page, select the margin trading to be opened, taking BTC/USDT as an example, click [Apply To Open] in “Assets”, check “I had read and understood the risks and rules explanation of the margin trading” and click ”Open Now” to apply for the corresponding margin trading account.
(2) Transfer to the principal
Method 1: Click [Transfer In] on the trading page to transfer the principal from “My wallet” or “Trading Account”. After the assets at least worth 100 USDT was transferred, you can borrow the currency for the minimum number of single loan is 50 USDT.
Method 2: Account → MARGIN ACCOUNT → Fund Transfer → Transfer In, then enter the currency and amount.
Step 1: Click [Loan] on the Exchange or MARGIN ACCOUNT page;
Step 2: Select the currency and amount to borrow on the right side of the Loan page. BTC/USDT margin account can only borrow BTC or USDT.
Margin multiple: Triple margin, which means you can borrow the equivalent double principal as your assets for margin trading.
Single minimum loan amount: 100 USDT (or equivalent other assets).
After the completion of the loan, you can make a margin trading on the trading page, and go long or short according to the judgment.
For example: Going long
In BTC/USDT margin trading, if you think the price of BTC will rise (such as rise from 4000USDT to 5000USDT), you should go long.
At this time, you need to loan USDT to buy BTC. For instance, loaning 4000USDT to buy one BTC, when the price of BTC rises to 5000USDT, selling your one BTC, you will have 5000USDT, after repaying loan and interest, you may earn about 1000USDT.
For example: Going short
In BTC/USDT margin trading, if you think the price of BTC will go down (such as going down from 5000USDT to 4000USDT), you should go short.
At this time, you need to loan BTC to buy USDT. For instance, loaning one BTC to buy 5000 USDT, when the price of BTC goes down to 4000USDT, you repay the loan one BTC which is exchanged for 4000USDT, you may earn about 1000USDT (tips: repay your interest).
The trading page and margin management will remind you that the current account's risk rate and the price of forced liquidation based on the current position.
The change in the number of positions and the price of the currency will bring the change of risk rate, the risk rate = total assets / loan assets * 100%.
When the risk rate of some coins’ margin account is less than 115%, the account will trigger the forced liquidation to return the loan funds.
Step 1: On the loan page, according to the history of loan, the loan order is used as the basis for repayment. Click on "Repay";
Step 2: The margin account and currency cannot be modified. You can choose partial or full repayment, and follow these two principles:
Principle 1: The repay currency is the same as the loan currency;
Principle 2: When partial repayment, the default priority will be repaid, and the interest will not be calculated after full repayments.
Daily interest rate: The daily interest rates of BTC, ETH and USDT are floating.
Interest calculation method: interest = loan amount * daily interest rate * days.
Calculation of the number of loan days: starting from the loan application, 24 hours as one day, less than 24 hours as one day.
The above is the instruction for FCoin's triple margin. Trading is risky and investment needs to be cautious.