What is Margin Funding?
Margin Funding is a complementary feature of Margin Trading. Margin Funding provides the funds from a pool of resources for people who want to engage in Margin Trading. Users engaging in Margin Trading will be able to borrow funds from this pool.
When an offer is taken by a Margin Trading/Funding user, the cryptocurrency in the Funding Wallet will be used to buy/sell more cryptocurrency. When the trader closes the position, the cryptocurrency will be returned to the corresponding Funding Wallet of the fund provider. Furthermore, interest is paid to the fund provider in the same currency provided.
Let’s go through the various terms.
These are the funds that you have borrowed but not used for margin trading.
These are the funds that you have borrowed and used for margin trading.
Note that when you engage in Margin Trading, funds borrowed from Margin Funding will be used in priority.
The funds that you have provided to the pool.
Bids & Offers:
This displays the bids and offers you have initiated, together with the uptake status.
The difference between Bids & Offers:
If you are BIDDING for an offer for a total amount of 20 days, you will be able to CANCEL the order anytime within those 20 days.
If you are OFFERING the funds, you will NOT be able to cancel the offer while the fund is on loan. In other words, your provisioned funds will be locked down for 20 days unless cancelled by the bidder. Once the bidding period is over, the interest will be paid back to you together with the principal sum.
By using the auto-renew function, you can preset the total amount of funds as well as the rate that you want to set per day over a period of time. When activated, it will auto-renew itself once the current provision has expired.
By using the Funding Book, you can observe the market interest rate at which users are offering funds at.
By using the Funding Form, you will be able to enter interest rate by percentage per day, the amount you would like to bid or offer, as well as the period of time for which you would like to bid or offer (minimum - 2 days, maximum - 30 days). If you require longer periods of time, you can use the auto-renew feature.
Let’s Get Started!
Transfer money into your Margin Funding Wallet
Go to your “Wallet - Deposit / Withdraw”
Enter the amount and choose the currency that you want to transfer from the Exchange to the Margin Funding Wallet. Once you’re done with the transfer you will instantly be able to see that your balance in the Margin Funding is updated.
Placing an Order
Example of Place an Order:
If you would like to place an offer for 5 ETH with a rate of 1.4% for 20 days, you would first need to enter 1.4% in the “Rate | % Per Day” field in the Funding Form. Next, input the amount of 5 ETH in the “Max Amount (0 for ‘No Max’)” field and enter 20 in the “Period | Days (2-30)” field. Once done, please click on the “Funding Offer” offer to proceed. A successful order will be reflected in the “Funding Book”, and in the “Bids and Offers” will also show that you put 5 ETH offer at a rate of 1.4%. Do note that if there is a matching market order, the order placed will be automatically filled and not reflected in the funding book.
Modifying / Cancelling the Order
If you have placed an order and it has not been taken up, you can modify the amount and interest rate of the order by clicking on the “Modify Order”(the little pencil icon) and clicking on the “Cancel Order” or “X” buttons of the order in the Bids and Offers section respectively. It will be automatically updated and be made available to the rest of the margin trading users based on the new conditions set.
Completely Filled / Partially Filled Orders
For example, I would like to borrow 10 ETH, but there’s only an order with 6 ETH available at that particular time range and interest rate, you can PARTIALLY fill the 6 ETH order and still place another order for the remaining 4 ETH. An order will be COMPLETELY filled if the requested order is 100% fulfilled with an existing order.
What are the supported currencies?
We currently support the following 4 currencies for Margin Funding: BTC, ETH, COB, and USDT.
(1) Margin trading automatically helps pair funding offers and bids.
(2) You will receive interest as return for the funds you lent. COBINHOOD will charge 50% for fee.
You can also learn more via a video, check it out!