What is margin trading (Margin)?
Updated
Margin by CoinDCX is the world’s most versatile margin trading platform. With Margin, you can trade cryptos with leverage and maximize your potential. We provide the funding for you to trade against other assets, at a leverage ratio of up to 5:1.
The use of margin means you are only required to hold collateral and are able to trade any of the margin pairs even if you do not hold the currency on that pair. This is possible because when placing a leveraged trade, you are borrowing funds for the entire value of that trade.
Once a position is open, the amount of funds used as collateral are not available for trade or withdrawal until the position is closed.
Margin trades appear as a "position". All profit or losses from the position are unrealized until you close the position, at which point adjustments to your currency balances will be made to account for the profit or loss.
When using the order forms, if you select a level of leverage (2, 3, 4, 5) then you are opening a margin position with borrowed funds. Leverage can only be selected from the Intermediate and Advanced order forms.