Margin Tutorial

What is Margin?

Margin is a trading feature where you can borrow funds in order to leverage your investment. Given its characteristics, margin can multiply your gains or losses. Using Trade by Trade, in a margin operation, you’ll get all the funding from our platform. The value of your margin account will be only used to guarantee Trade by Trade loans and adjust debts that you may have with us.

 

How much is the leverage value in my margin operation?

The leverage value is 2.5.

 

Margin trade

Using Margin, you’ll make an order and have a margin (that can be changed during time) using borrowed money. When you open that margin trade (Buy or Sell), loans will be settled with Trade by Trade and fees will be charged. Depending on the success of your operation, you can receive funds or get funds deducted from your margin account.

If you’re losing too much money, margin of 20% or less, your position will be closed automatically by Trade by Trade system, since only your money can be used as collateral in the operation. This can and will be done without prior notice.

Be aware that trading with leverage is high risk trading. It must be used with caution because the user can loose money.

How to do “Margin” in Trade by Trade?

 

  • Register or login in Trade by Trade exchange platform

 

  • Select your base coin and the cryptocurrency you want to exchange

In this tutorial base coin is bitcoin and the exchange currency is DASH

Image 3: Choose base coin and currency to be exchanged

  • Transfer funds to margin account

You need to transfer some funds to your margin account

Image 4: “Transfer funds” option in menu bar

Image 5,6,7: “Transfer funds” process

  • Select “Margin” in the top of the page

Image 8: “Margin” option in menu bar

  • See the funds available

When doing margin, your available funds should be multiplied according to the amount you placed on it. In the example 15 BTC placed on margin were multiplied and now the available funds for operations are 37.5 BTC.

Image 9: Before fund placement margin screen

Image 10: Screen after placing funds in margin

  • In Margin screen choose the order you want to place: “Buy” or “Sell”

Image 11: Choose order type screen

a) If you want to place a buy order

  • Select the price, in base coin, that you’re willing to pay for each unit of your selected cryptocurrency (image 12, number 1)
  • Choose the number of units, from your selected cryptocurrency, that you want to buy (image 12, number 2)
  • Check the total price, in base coin, of your order (image 12, number 3)
  • Confirm your order carefully and click the “Buy” button (image 12, number 4)

Image 12: Placing a buy order with margin

b) If you want to place a sell order

 

  • Select the price, in base coin, that you’re willing to receive for each unit of your selected cryptocurrency (image 13, number 1)
  • Choose the number of units that you want to sell from your selected cryptocurrency (image 13, number 2)
  • Get the total price, in base coin, of your order (image 13, number 3)
  • Confirm your order carefully and click the “Sell” button (image 13, number 4)

Image 13: Placing a sell order with margin

c) If you want to place a stop-limit order 

 

  • Select the stop value (image 14, number 1)
  • Choose the limit (image 14, number 2)
  • Select the currency amount (image 14, number 3)
  • Check the total price for the operation (image 14, number 4)
  • Confirm if you wish to put the stop limit in buy or sell operation and click the appropriate button (image 14, number 5)

Image 14: Placing a stop-limit order with margin

Closing your position

After some time, you may want to close your position or have your position closed by the system. At that time, loans and debts with Trade by Trade will be automatically paid, using your margin account funds, and if you have funds to receive, it will be sent to your wallet.

This tutorial is made in order to explain how to use some features in the platform. Fees were not considered in this tutorial, but will be considered in real operations – and you’ll be informed on it. Values that were used in this example are not the market real values – just dummy values we use for the example, and are not be used in your investment decisions.