A Brand New Margin System
Trade linear perpetuals on Globe with multi-currency margin.
One of the key ideas behind Globe is having the flexibility to trade however you want. We’re making a massive step towards that with the impending release of Unified Margin.
Unified Margin (UM) is a completely new type of margin account that allows you to use any of your assets as collateral for trading on the derivatives exchange. You can trade derivatives regardless of which coins you hold; no more need to swap everything for USDT!
Most exchanges use stablecoins as the quote asset for linear products. If however you want to keep your holdings in BTC, you’d be restricted to trading on exchanges that support inverse perps. Unified Margin allows you to use your BTC as collateral trade in the futures market (we lend you USD to trade with). If you like trading with BTC still, that’s fine. If you want to use USDT you can. You can mix and change to suit your strategy or portfolio.
As part of the switch to UM we are retiring our current inverse and quanto perpetuals and replacing them with linear perpetuals. These are much easier to understand and trade than inverse and quanto perpetuals. Market makers much prefer linear perpetuals, leading to them quoting higher liquidity and tighter spreads, which means friendlier markets for trading and eventually bigger volumes!
How does Unified Margin work?
Very simply you put up your coins as collateral, and we lend you USD to trade with. When you are done, you can withdraw your coins, and then take your trading profit as USDT. For example, if you put up 1,000 USDT, we would give you 1,000 USD to trade with. If you put in 1 BTC, and the current market price is 35,000 USD, we would give you 35,000 USD to trade with. The amount that you have available to trade is adjusted as the market value of your collateral changes. For example, if 1 BTC goes from 35,000 USD to 40,000 USD, you would now have 40,000 USD to trade with.
For more information see the Unified Margin Support Page.
A bonus for using GDT
When unified margin launches, GDT will be one of the coins you can use as collateral, and we will be offering a 20% bonus on this coin! For example, if you move 10000 GDT to your derivatives account and the market price of GDT is $0.20, you will have $2,400 to trade with rather than just $2,000.
What products are changing?
Each old inverse/quanto market will be closed and replaced with a new equivalent linear perpetual.
What is changing with my account?
As part of the switchover, we are closing all open positions in our existing products. What that means is that we will close your positions at the current index price when we do the transition. We strongly recommend that you close your positions yourself ahead of this, but if you don’t, they will be closed automatically.
The Bitcoin you currently have in your derivatives account will become collateral during the switchover. You will be able to withdraw this or trade immediately — you will not lose any assets as part of the switchover.
When is Unified Margin launching?
Derivatives trading with Unified Margin on Globe will commence at 16:00 GMT on Monday 28th March 2022.
