3. Margin trade
Summary
Margin trading is an acceptable form of trading that uses borrowed funds from a third-party/exchange to magnify the investment through leverage.
The principal of Long is to buy at a low price and sell at a higher price, repay the loan and interest minus the principal and handling fees, the remaining is profit.
The principal of Short is to borrow an asset, sell the asset and then buy back the asset at a lower price. The difference after loan and interest repayment minus the principal and handling fees will be profit. Short sellers are betting that the asset they sell will drop in price.
Margin trading magnifies the investment so please perform due diligence and fully understand the characteristics of margin trading and with caution based on your risk tolerance.
3.1) In the Cross Margin page, enter the buy price in the "Price(USDT)" field and the quantity you wish to buy in the "Amount" field. You may also scroll the % bar to adjust the amount of your order based on % of your available asset.
Always remember to double-check your input for the price and the amount you wish to buy before clicking the 'Buy BTC' button.
3.2) Long: Borrow USDT, buy at a low price and sell at a higher price. Short: Borrow an asset, sell the asset and then buy back the asset at a lower price.
To learn more about the rules of margin trading, please refer to the "Business Rules for Cross Margin Trading" guide.
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4. Repayment