What is Margin Trading?

Margin trading on the Crypto.com Exchange allows you to buy or sell Virtual Assets in excess of what is in the wallet, by incurring negative balances on the Crypto.com Exchange. Eligible users can use eligible Virtual Assets in the wallet as collateral to open these margin positions.

For example, if you had no ETH in your wallet, and wanted to take a short position, you would be able to sell ETH and incur a negative ETH balance provided you have sufficient collateral to support that position. Conversely, if you wanted to buy ETH/BTC, but had no BTC (or insufficient BTC to complete your order) in your wallet, enabling margin allows you to complete this buy by incurring a negative BTC position(given sufficient collateral at the time of order)

Supported Coins

AAVE, ADA, ALGO, APE, API3, ATOM, AUDIO, AVAX, AXS, BAL, BAT, BCH, BTC, CELR, CHZ, COMP, CRO, CRV, CTSI, CVX, DAI, DAR, DOGE, DOT, DYDX, EGLD, ELON, ENJ, ENS, EOS, ETC, ETH, FIL, FLOW, FORTH, FTM, FXS, GAL, GRT, HBAR, HNT, HOT, ICP, ICX, IMX, INJ, KNC, KSM, LINK, LRC, LTC, MANA, MATIC, MOVR, NEAR, NEO, OGN, ONE, OP, QNT, QTUM, REN, REQ, RNDR, RSR, SAND, SHIB, SLP, SNX, SOL, SRM, STX, SUSHI, THETA, TRB, UNI, USDT, USD Bundle, VET, WAVES, WAXP, WBTC, XLM, XRP, XTZ, YFI, YGG, ZIL

Leverage is a very powerful tool because it can amplify your gains, but it is also dangerous because it can amplify your losses to the point where your Virtual Assets can be permanently lost and you could still have a liability to us.

Examples of gains/losses:

  • If, for example, the margin is 0.1 BTC but the value of the trading on the basis of that margin is 1 BTC, a 5% move in the market (in either direction) is translated into a 0.05 BTC gain or loss (50% of the value of the margin).

Common Terms on Crypto.com Exchange

Term

Description

Margin

Any amount of Virtual Assets required as collateral for a leveraged position (i.e. any negative balance or derivative position)

Leverage

Leverage is the amount of exposure over required collateral for their position (e.g. 3x leverage can be used to assume a position 3x larger than the collateral consumed)

Available Margin

The amount of immediately available Virtual Assets in that wallet with collateral value that is not already held as margin or otherwise unavailable

Interest

The cost of borrowing Virtual Assets

Position

Traders can hold two positions:

  1. A long position is using your Virtual Assets to purchase more in the expectation that the value will rise

  2. A short position is using your Virtual Assets to sell in the expectation that the value will drop

Margin Call

When your Margin Score drops below the prescribed thresholds set by us, a Margin Call will be triggered via email to your Account’s registered email address. The email will notify you to add more Collateral to your wallet, reduce negative balances or reduce derivative positions.

Margin Trading Term Limit

For the maximum amount of time we are prepared to provide you with credit under the loan.

See “Margin Trading Term Limit” for further details.

Liquidation

If the collateral in your wallet falls below maintenance margin, a portion of or all your positions may be closed

See the Addendum for further details regarding Forced Liquidation.

Maximum Borrowing Limit

The maximum possible amount that Crypto.com could make available under a Margin Trading Facility. This maximum amount is a general ceiling and is not specific to any person. This is distinguished from the specific Margin Credit Limit that Crypto.com may make available to a specific user by reference to the amount of Collateral that the user has provided and other factors (and accordingly will be different for each user). This may be lower than the Maximum Borrowing Limit.

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