CoinEx Margin Trading Rules

CoinEx Margin Trading Rules

Margin trading is a leveraged trading strategy that allows traders to amplify their profits and losses by borrowing additional funds from an exchange. To ensure the safety of its users and maintain a fair trading environment, CoinEx has implemented a set of comprehensive margin trading rules.

1. Eligibility Requirements for Margin TradingTo participate in margin trading on CoinEx, users must meet the following eligibility criteria:

• Complete KYC (Know Your Customer) verification to enhance account security.
• Maintain a positive account balance and adequate collateral in the designated margin account.
• Familiarize themselves with the risks associated with margin trading.
• Age requirements vary by jurisdiction, but generally, traders must be at least 18 years old.

2. Margin Account ActivationOnce eligibility requirements are met, users can activate their margin account on CoinEx by following these steps:

• Log in to the CoinEx website or mobile app.
• Navigate to the "Margin" tab and click "Activate Margin Account."
• Read and agree to the Margin Trading Agreement.
• Configure security settings, such as setting up Google Authenticator (2FA).
• Submit the activation request and wait for CoinEx to approve the application.

3. Funding Margin AccountAfter the margin account is activated, users must fund it with the assets to be used as collateral for their trading positions.

• CoinEx supports funding margin accounts with various cryptocurrencies, such as BTC, ETH, and USDT.
• Users can transfer funds from their Spot Account or deposit funds directly into their Margin Account.
• The minimum margin funding amount varies depending on the trading pair and the leverage used.

4. Calculating Leverage LevelsLeverage is the ratio between the borrowed funds and the trader's own capital. CoinEx offers varying levels of leverage, allowing traders to customize their risk exposure.

• Available leverage ranges typically fall between 2x and 100x.
• Higher leverage amplifies potential profit margins but also increases the risk of significant losses.
• Traders should carefully consider their risk tolerance and trading strategy before selecting a leverage level.

5. Initiation of Margin TradesWith a funded margin account and desired leverage, users can initiate margin trades on CoinEx.

• Margin trading can be executed in the "Margin" trading interface.
• Traders can choose between Long (buy) and Short (sell) positions depending on their market outlook.
• Order parameters, including order type, price, and quantity, can be set as usual.

6. Margin Call and LiquidationMargin trading involves the added risk of margin calls and liquidation if the margin ratio falls below the required maintenance margin level.

• Monitoring margin utilization is essential to avoid potential liquidations.
• CoinEx issues a margin call when the margin ratio falls to a predetermined threshold, often around 120%.
• Traders can deposit additional funds or close positions to restore the margin ratio.
• If the margin ratio continues to decline, CoinEx may liquidate the trader's positions to minimize losses.

7. Margin Interest ChargesLeveraging funds from the exchange comes with the obligation to pay margin interest on the borrowed funds.

• Margin interest rates vary based on the borrowed asset and the market conditions.
• CoinEx charges margin interest on a daily basis, and users are required to maintain sufficient interest coverage in their margin accounts.
• Traders can view their margin interest debt and related details in the "Margin" trading interface.

8. Withdrawal and Profit ManagementOnce a trader closes a margin trade, the profits or losses are automatically reflected in the margin account.

• Withdrawal fees may apply when transferring funds from the Margin Account to the Spot Account.
• Traders can follow the platform's withdrawal procedure to transfer funds out of their CoinEx accounts.
• Proper profit management strategies are crucial to secure gains and minimize risks in margin trading.

9. Risk Management in Margin TradingMargin trading carries inherent risks that traders must be aware of and proactively manage.

• Leverage can magnify both profits and losses, so traders should exercise caution and set appropriate stop-loss orders to limit potential losses.
• Regular market monitoring is essential to respond timely to market fluctuations and adjust positions accordingly.
• Implementing sound risk management strategies, such as position sizing and diversification, can help mitigate risks.

10. Legal and Regulatory ConsiderationsMargin trading regulations vary across jurisdictions, and CoinEx adheres to all applicable laws and regulations.

• Users are responsible for ensuring compliance with local regulations in their respective jurisdictions.
• CoinEx may request additional verification documents or restrict margin trading services in certain regions due to regulatory compliance requirements.
• Traders are advised to stay informed about regulatory developments in their countries.