Understanding Margin Trading on MEXC

What is Margin Trading?

Margin Trading allows users to trade assets on borrowed funds in the crypto market. It amplifies trading results so that traders are able to reap larger profits on successful trades. Similarly, you are also at risk of losing your entire margin balance and all the open positions. 

Only 4 steps to start trading Margin on MEXC: 

1. Activate your Margin account
2. Transfer assets to your Margin wallet
3. Borrowing assets
4. Repayment

Step 1, activating your Margin account.

Log on to MEXC’s official website, find [Trade] on the menu bar and click [Margin]

Once directed to the Margin market interface, click [Open a margin account] and read the Margin Transaction Agreeement. Click [Confirm activation] to proceed.

Start your journey on Margin Trading now. 

Now on to Step 2, here’s how to transfer assets to your Margin wallet

Click [Transfer], choose the preferred token and key in the amount that you would like to transfer as collateral. Click [Transfer now] to proceed. Your borrowing limit is based on the funds in your Margin wallet. 

Step 3: Borrowing assets

Under the [Normal] mode, click [Loan] to start borrowing assets. Our system will calculate the amount you can borrow based on the funds in your Margin wallet. The minimum loan amount and hourly interest rate will also be shown in the system for easy reference.

Selling short on Margin Trading means expecting a bearish market in the near future to sell high and buy low whilst repaying the loan. 

Taking BTC/USDT as an example: 

If the current BTC price is 40,000 USDT and it is expected to drop, you can choose to go short by borrowing BTC. Sell your BTC to USDT at a high price and wait for the price to drop to buy in BTC. 

Proceed with Repayment to return the borrowed tokens and interest. 

After deducting the principal and interest fee, the balance would be your profit from the trade. 

It will be the exact opposite for going long on Margin Trading. 

Buying long on Margin Trading means expecting a bullish market in the near future to buy low and sell high whilst repaying the loan. 

If the price of BTC is expected to increase, you can choose to borrow USDT to buy BTC at a low price and sell it at a high price in the future. Essentially, it is the method of buying low and selling high. 

Taking BTC/USDT as an example: If the current BTC price is 40,000 BTC and it is expected to increase, you can choose to buy long by borrowing USDT. Buy BTC with USDT at a low price and wait for the price to increase and sell your BTC. Proceed with Repayment to return the borrowed tokens and interest. After deducting the principal and interest fee, the balance would be your profit from the trade. 

Step 4: Repayment

To return your borrowed assets, click [Repayment] and select the order and key in the amount you would like to return. Click [Repayment] to proceed. In the event that there’s not enough assets to be deducted for repayment, please transfer the required assets to your Margin wallet in time. 

MEXC also provides Margin Trading in Auto mode to simplify trading processes and enhance users’ experience.

In the Auto mode, users do not need to manually borrow and repay the assets. Our system will determine whether to borrow assets based on the funds in users’ Margin wallet. 

If the assets needed are more than the available funds, our system will automatically borrow the tokens in the required amount, calculate the interest fee and place the order. Once users withdraw the order when it’s filled or partially filled, our system will automatically return the borrowed token to reduce users’ interest fee caused by idle loans. 

Gentle reminder: Prices of digital assets may fluctuate greatly. Users are advised to fully understand the risks of Margin Trading and do your own research before trading.

Margin Trading on MEXC - Simpler interface with effortless navigations

Start your journey on Margin Trading today!