Important: The following persons are not allowed to participate in Margin Trading Program: (i) Residents of Japan, USA and Taiwan, residency is determined by the User’s KYC information; and (ii) Users who do not pass KYC Level 2. Users’ access to Margin Trading Program may be unavailable while in the previously mentioned jurisdictions.
I. Transferring funds to the Margin wallet
To start margin trading, you must first transfer funds into your margin wallet.
1) Once logged in, click on the top right button to access the feature drawer.
2) Select Wallet.
3) To transfer funds into your margin wallet, go to Funds - Deposit/Withdraw. Input the intended currency in the “Amount” field, select the currency and wallet from “Exchange” to “Margin”. Click on the “Transfer” button.
4) The funds should be instantly transferred into your margin wallet. You will see the amount that you have just transferred is reflected in the “Available Margin” column.
II. Start margin trading
1) Currently, COBINHOOD supports the following pairs for margin trading: BTC/USDT, ETH/USDT, ETH/BTC and COB/ETH.
2) Click on “Margin” on the order form.
You can choose to either Margin Buy or Margin Sell on the Order Form panel, located on the right side of your dashboard. Place either a market or limit order.
Note that the margin tab will only be available for supported margin trading pairs. Only the Exchange tab will be available for unsupported pairs.
3) The wallets for exchange and margin trading are separate. The available funds and funds-on-order are displayed separately in separate rows based on the respective wallets.
You can see the “Margin Tradable” amount in USD in the Balance Section, located in the lower right of your dashboard.
The margin is fixed at 3 times. The Margin Tradable amount (in USD) is your buying power.
For example, if you have deposited 10 ETH into your Margin wallet, then your margin tradable amount will be:
10 (ETH) * 3 (margin) * 300 (price) = 9,000 USD.
III. Opening a Margin position
You can open a margin position by selecting “Margin" from the Order Form panel.
In this example, we will place a market order.
Select “Market” and input the desired amount and price.
Before an order is placed, there will be a notification window to confirm the order.
Once confirmed, the order will be executed and filled successively. Notice that the margin market order will be reflected under “Positions”. This is because positions are only active once the order is successfully placed.
Also note that for limit orders, the order will need to be filled first before shifting to the “Positions” tab. Similarly, a partially filled limit order will have the filled amount reflected in the “Positions” tab. The rest of the unfilled order will remain in the “My Orders” tab until it is filled, modified or cancelled.
IV. Viewing a Position
Position can be viewed under the “Positions” tab.
Margin Trading has a risk control system. If the user's value in the margin trading reaches the liquid price, the system will automatically close the position, and the closing price will be updated every minute.
V. Claiming a Position
Claiming a position is defined as allowing the use of funds you have in the Margin Wallet to settle a leveraged position as an exchange order. Claiming partial or full position requires that you have enough partially realized P/L in your Margin Wallet to settle finances associated with your position.
You can claim the position by clicking on the flag icon.
A pop-up window will show the amount of your position which you can fully or partially claim. Once you have keyed in your desired amount, click “CLAIM” to execute.
VI. Closing a Position
To close a position, use the cancel button to claim the full position.
A notification window will be displayed to confirm the action. Click on “OK” to place the order.
When the order is completely filled, borrowed funds are repaid and profit/losses will be automatically credited to your respective wallets.
Note: The Platform will force you to close your position in Margin Trading Program if one or more pairs reach the "Liq Price" set by the Platform.
(1) Margin trading automatically helps pair funding offers and bids. The loan amount will be two times that of your principal sum. Interest is accrued for the funds borrowed and vice versa. You will enjoy 25% off the prevailing interest should you pay interest with COB.
To select COB as the default payment method, you can access the toggle via the "Account" page. The external transfer fee or margin funding interest accrued might change based on the prevailing rates each time you toggle the setting on/off.
(2) Margin Trading has a risk control system. If the the price of margin trading reach liquid price, the system will automatically liquidate. The liquid price update every minute.
You can also learn more via a video, check it out!
Have any questions? Please contact us at email@example.com. We will be glad to answers any questions you may have.