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You've probably heard or are even familiar with the spot and Futures Trading, you've probably heard many stories about big gains in futures trading and a lot more people who got a straight answer and lost all their money when trading futures. You never lose all your money during a spot trade because the asset's price can't fall to absolute zero unless it gets ragged. At the same time, you don't get as much profit in the spot market when trading as you do in trading futures.

This is where margin trading comes in. What is the margin of trading?

Margin trading is a trading platform that allows traders to borrow more money to make large amounts of trades that would normally be impossible with their available funds. The borrowing of these funds requires the deposit of certain amounts as collateral. In addition to adding money, a trader who wants to take on a new status but does not have USDT, can deposit any of his crypto assets in a marginal account as collateral to borrow USDT, rather than sell the asset in USDT.

Margin trading is similar in many ways to spot trading, but it also offers the added benefits of higher profits due to the higher trading volume offered by borrowed money.

Sounds cool, doesn't it? What else should you know about margin trading?

Margin trading allows you to enter low-security positions that are larger than your account balance.

Margin trading offers higher return potential than traditional trading, but also higher risk.

Marginal interest rates tend to be lower than on credit cards and personal loans.

The margin can also be used to withdraw money from the value of the account in the form of a short-term loan.

Like futures trading, you can also get short or long positions in the commodity margin trading.

KuCoin offers margin trading to all users from all regions, and the general margin estimation meter applies to all accounts regardless of region. KuCoin has two (2) marginal trading systems;

Standalone margin; provides up to 10 times greater leverage on more than 200 assets independently. Positions opened in individual margin positions do not and do not affect the development of other margin positions.

Cross margin; gives traders leverage of up to 5x and the ability to use a variety of funds as collateral for their position. Unlike a single margin, available funds affect the ratio between the margins on debt and affect all positions opened in the cross-margin.


When you decide which asset you want to use to make a double profit, the next thing you need to do is choose between a cross margin or a single margin.

While cross margin only offers 5x leverage, it also allows users to use different types of investments as collateral and open positions for different assets. The debt ratio of Cross-margin accounts depends on the combined ratio of all assets included in the cross-margin accounts. Therefore, if liquidation is caused by 1 asset, all assets in the cross-margin account are liquidated.

On the other hand, a single margin allows positions to be opened in different asset areas, regardless of the effectiveness of the others. You can increase your BTC position in USDT by 50% and XRP by 20%, and your BTC position in PnL does not depend on a weak XRP position.

An important aspect of margin trading is the debt ratio, the debt ratio reflects the percentage of debt outstanding. Debt ratio = (marginal loans + accrued interest) / total assets on the marginal account. For example, if you deposit $ 100 in a separate marginal account, you can borrow up to $ 900 to trade. With the cross margin, a deposit of $100 will give you $400 more money.

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