1.What is “margin”?
Margin is to multiply the principal several times and make more investment with small funds to incite multiple funds and maximize the “currency transaction”.
The maximum operable capital is 3 times the position, which makes the income tripled. Of course, the loss is also large. Please use the margin to control the risk.
2.What can “margin” do?
Do more xx currency, for example, buy the principal and loan into a certain currency type, and wait until the ideal price is “sold”. After loan and interest, the rest is earned. Double income
Shorting a certain currency, the transaction is not only a choice of “holding up” or “empty position”. For example, you can also “sell” by the currency, and wait until it falls to the ideal price to “buy” to repay the currency. Take the "empty" income.
3.How is the margin loan cost calculated?
From the time of applying for margin, interest is calculated on a natural day (less than 24 hours on a 1 day basis), the daily interest rate is 0.01%, and assets and interest are repaid when the margin is returned. [Note: This is called "Margin rate", but the content does not mention the interest rate. Compared with huobi, huobi mentioned the interest rate is 0.1% (day interest rate)]
4.What is the risk of margin?
Margin offers the possibility to achieve greater returns with less capital, but if the wrong direction of the transaction is judged, the loss will be amplified year-on-year. Therefore, ordinary traders try to avoid high-margin heavy trading, and prevent the occurrence of short positions or even wearing positions.
5.How to reduce the risk of margin?
Use margin multiples to control positions.
Stop the profitandloss at the right time and spontaneously close the position.
Add a margin in time to ensure that the ratio of total assets/lmargin is greater than 110%.