How to operate Poloniex leverage

How to Operate Poloniex Leverage

Poloniex is a cryptocurrency exchange that offers leverage trading, allowing users to multiply their potential gains (and losses) by borrowing funds from the exchange. Operating leverage on Poloniex involves several key steps:

1. Enable Leverage Trading

• Log in to your Poloniex account and navigate to the "Funding" tab.
• Under "Margin Account," toggle the switch to "Enabled."
• Review and accept the terms and conditions.

2. Fund Your Margin Account

• Transfer funds from your spot wallet to your margin account.
• Select the desired cryptocurrency and enter the amount you wish to transfer.
• Confirm the transfer.

3. Choose a Trading Pair and Leverage

• Navigate to the "Exchange" tab and select the trading pair you want to trade.
• On the order form, select the "Margin" tab.
• Enter the desired leverage, which can be up to 100x depending on the trading pair.

4. Place a Margin Order

• Choose the order type (Market, Limit, Stop-Limit, or Stop-Market Order).
• Enter the order quantity and price (if applicable).
• Verify the order details and click the "Buy" or "Sell" button.

5. Monitor Your Margin Position

• Go to the "Open Orders" tab to view your active margin orders.
• The "Margin Used" field indicates the amount of borrowed funds used for the order.
• The "Margin Level" shows the ratio of your equity to the borrowed funds.

6. Manage Risk

• Set stop-loss orders to limit potential losses in case of adverse price movements.
• Monitor your margin level closely and consider closing positions or adding collateral if the level falls below a certain threshold.
• Be aware of the risk of liquidation if the margin level drops too low.

7. Close Your Margin Position

• Go to the "Open Orders" or "Closed Orders" tab to find the margin order you wish to close.
• Click the "Close" button and confirm the closure.
• The borrowed funds will be returned to your margin account, and the position will be closed.

8. Withdraw Funds

• Once your margin positions are closed, you can withdraw the funds from your margin account back to your spot wallet.
• Navigate to the "Funding" tab and select the "Withdraw" option.
• Choose the desired cryptocurrency and enter the withdrawal amount.
• Confirm the withdrawal.