Margin Trading Glossary

 

Total Assets: The total sum of coins in your Isolated Margin Account including available assets and assets in use.

 

Transferred Assets: The coins transferred from other accounts to your Isolated Margin Account under some trading pair.

 

Loaned Assets: The loaned coins by using your available assets in Isolated Margin Account as margin.

 

Available Assets: The coins available for trading in Isolated Margin Account including Transferred Assets and Loaned Assets.

 

Assets in use: The coins unavailable for trading in Isolated Margin Account, usually refer to the coins that are currently in use for open orders.

 

 

Maximum Loan: The maximum amount of coins available to loan under the selected trading pairs. CoinEgg will determine the maximum loan limit for a user based on the maximum loan amount and risk control rules of the platform.

 

 

Short Selling: Seeing a coin in a bearish trend, loan the coin and sell it. Sell at a high price and buy at a low price.

Example: Take ETH/USDT as an example, assume the platform supports up to 3X leverage. When you consider that the ETH price will drop from 2000 USDT to 1000 USDT and you have a principal of 0.5 ETH (1000 USDT) now, you can borrow 1 ETH from the platform, sell 1 ETH at 2000 USDT, then buy back at 1000 USDT. You will earn 1000 USDT (0.5 ETH). If you only use your own funds to trade, you can only buy low and sell high, and you cannot do short.

 

 

Going Long: Seeing a coin in a bullish trend, loan USDT or BTC and buy the coin. Buy at a low price and sell at a high price.

Example: Take ETH/USDT as an example, assume the platform supports up to 3X leverage. When you consider that the ETH price will rise from 1000 USDT to 2000 USDT and you have a principal of 1000 USDT now, you can borrow 2000 USDT from the platform, buy 3 ETH at 1000 USDT, then sell ETH at 2000 USDT. You will earn 3*(2000-1000)=3000 USDT. If you only use your own 1000 USDT to trade, you can only earn 1000 USDT. With 3X leverage, the earning tripled!

 

 

Interest Rule: Each loan order will be charged for interest independently. Interests will be incurred once after the loan order is accepted and accrued per 24-hour intervals.

 

Repayment Rule: Repayments will be used to cover the earliest loan orders, and pay off interest prior to principal. The repayment status will be changed to completed once all the debts have been paid off, and this order will no more be charged for interest.