Basic Concepts in Margin Trading

Tradable Balance: This amount of money can be used in the initial amount of money transferred to Margin account x2.5 according to Poloniex, x3.3 according to Bitfinex. Each time you open a position, it decreases the amount you use. If you transfer USD to your Margin account, this amount will be fixed. If you transfer coin (BTC / ETH / BCH or ETC etc) to your Margin account, this amount will fluctuate with the price of the currency. The price increases it will increase, the price decreases it also decreases. In addition, this amount will decrease as your losses increase. Check out the photos at the end of this post.

1, The amount of funds transferred to the Margin account: 25 ETH
2, Estimated amount in USD
3, Current Available Balance.

An example of placing a buy order in Margin Trading Bitcoin on Bitfinex
Position:
Long: Buy on cheap, expect high prices to sell out.
Short: Borrow to sell in advance, expect the price to fall to buy cheap and return.
Maintenance Balance:% of play amount, required to not be liquidated account. The remaining amount (Capital — Loss) must be greater than this value. Poloniex requires 20%, Bitfinex is 15%. (Location 4, last photo)
Required Equity: The remainder of the estimated balance required to be liquidated, similar to the Maintenance Balance, but referred to USD / BTC instead of%.

Liquidation: When the number of holes exceeds the limit (or Maintenace <20% (15% vs Bitfinex).) If you are Long, it will sell enough coins you have bought earlier at market price. If you are short, it will buy enough coins you have borrowed before at market price (very high), then the balance will be returned to your account. yours.
Magin Call: Alert when your account is nearing the liquidation threshold, emailed to you to decide: Cut a hole or armor to maintain.
Base Price: The estimated price for your order, when Long, the base price as low as possible, when short the Base Price as high as possible (Buy cheap, sell expensive to be profitable).
LIQ Price: Estimated when the price reaches this milestone your account is liquidated.
P / L: Estimate your profit or loss based on current market orders. P / L% is the amount of profit and loss calculated in%.
P / L fee / Funding Cost: Your loan fee.

Parameters on the Bitfinex Bank Margin account
So in this article, KriptoA introduced you to an overview of Margin Trading Bitcoin or other electronic currencies. KriptoA’s advice is that before you join margin trading, be sure you know the basics of margin trading as well as technical analysis. Wish you lots of success taken from the market!

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