1. Introduction of Leverage Trading
Bixin Leverage Trading, a low leverage spot product, is a tool for investors to gain higher profits by increasing their buying power using a small amount of money, which allows users to hedge spot risk as well as gain higher profits. However, its risk is higher than spot trading.
The Leverage Trading has multiple cryptos and margin for option, and one-click repayment to avoid unnecessary calculation. Besides, its limit and market stop-loss features help you to trade on your own strategy without always watching the market to ensure profitability.
As low as 0.02% daily interest rate for BTC/USDS and up to 100 BTC limit for per transaction
2. Functions of Leverage Trading
l Go long & go short
Go long: a user buys BTC after transferring BTC or USDS and confirming leverage. And when the price of BTC/USDS goes up, the user sells BTC and gains profits after repaying the principal and interest of borrowed USDS. On the contrary, if the price goes down to original buying level，then a loss will occur.
Go short: a user sells BTC after transferring BTC or USDS and confirming leverage. And when the price of BTC/USDS goes down, the user buys BTC and gains profits after repaying the principal and interest of borrowed USDS. On the contrary, if the price goes up to original selling level, then a loss will occur.
l Trading fee & loan interest
0.1% or one thousandth trading fee will be charged for each transaction.
USDS loan adopts floating rate, for example, on 20th November, its daily interest is 0.036% while USDT’s daily interest is 0.06% and BTC and other cryptos’ are 0.02%. The interest is bearing on daily basis and no compound interest.
l Leverage and loanable amount
Currently Bixin’s Leverage pairs BTC/USDS and BTC/USDT support 2x, 3x and 5x leverage and other pairs support 2x and 3x leverage.
Maximum amount that can be borrowed with leverage = (total available assets - outstanding borrowed assets - outstanding interest) * (leverage- 1) - borrowed assets.
Note: all assets are equivalent to USDS
l Leverage trading limit
The trading limit for Leverage is similar to Instant Exchange‘s limit. Take BTC/USDS for example, its minimum amount is 0.001 BTC and maximum amount is 100 BTC. For more trading limit details, it can be found on trading page.
l Limit order function
Under limit order mode, you can choose market or limit order. No interest accrues and you can cancel the order at anytime until it has been successfully completed.
l Margin ratio and maintenance margin ratio
Margin ratio = (total equity - total debt)/total dept*100%
Maintenance Margin Ratio is the lowest required Margin Ratio for a user to maintain the current open position(s).
When the margin ratio is less than the maintenance margin ratio, a liquidation is triggered.
All cryptos under Bixin Leverage are set at 3% at present.
l Liquidation price and calculation
Liquidation price is the price when margin ratio is less than the maintenance margin ratio.
Liquidation price = 【(available USDS - loan USDS - interest USDS) - maintenance margin ratio*loan USDS】/【maintenance margin ratio*loan BTC- (available BTC - loan BTC - interest BTC)】
Note: The above examples do not include loan interest and trading fee.
3. Reference Document
For more leverage details, please refer to https://help.bixin.com/margin/