How to go short in BingX margin trading

Shorting cryptocurrencies on BingX Margin Trading involves speculating on an asset's price decline, with leverage amplifying potential profits and losses.

Nov 26, 2024 at 12:58 am

How to Short in BingX Margin Trading

Margin trading involves borrowing assets to trade, allowing traders to amplify their potential profits and losses. BingX, a reputable cryptocurrency exchange, offers margin trading to enable traders to short cryptocurrencies. Shorting a cryptocurrency is a strategy where traders speculate on the asset's price to fall.

Steps to Short in BingX Margin Trading

1. Open a Margin Account:

   • Access the BingX website or mobile app.
   • Navigate to the "Margin" tab.
   • Click "Open Margin Account."
   • Select the desired margin mode ("Isolated Margin" or "Cross Margin") and collateral.
   • Agree to the terms and conditions.

2. Transfer Assets to Margin Account:

   • Spot Wallet: Transfer funds from the Spot Wallet to the Margin Account.
   • Deposit: Deposit funds directly into the Margin Account.

3. Choose a Crypto to Short:

   • Browse the Trading Market to find the desired cryptocurrency.
   • Select the desired trading pair (e.g., BTC/USDT).

4. Open a Short Position:

   • Click on the "Short" button.
   • Specify the "Margin Mode" (Isolated Margin or Cross Margin).
   • Enter the "Order Price" (desired entry price).
   • Select the "Leverage Level."
   • Adjust the "Order Amount."
   • Click "Confirm" to open the short position.

5. Manage the Short Position:

   • Take Profit Order: Set a 'Take Profit' order above the entry price to secure profits.
   • Stop-Loss Order: Place a 'Stop-Loss' order below the entry price to limit losses.
   • Monitoring: Monitor the position regularly and adjust orders as necessary.

6. Exit the Short Position:

   • Close Manually: Place a reverse position in the same trading pair to close the short position manually.
   • Auto-Close: If the Margin Balance falls below the Maintenance Margin requirement, BingX may liquidate the position to cover losses.

7. Repay Borrowed Funds:

   • After closing the position, traders must repay the borrowed funds plus interest to close the Margin Account.

Leverage in BingX Margin Trading

Leverage amplifies potential profits and losses in margin trading. It allows traders to borrow funds to increase their position size beyond their available capital. BingX offers the following leverage levels for short selling:

• BTC/USDT: 10x, 20x, 50x, 100x, 150x, 200x
• ETH/USDT: 10x, 20x, 50x, 100x
• XRP/USDT: 10x, 20x, 50x

Important Considerations

• Risks: Shorting cryptocurrencies carries significant risks due to market volatility. Traders may lose more than their initial investment.
• Fees: BingX charges interest on borrowed funds and a small spot trading fee on trades.
• Margin Level: Maintain a sufficient Margin Level to avoid liquidation.
• High Leverage: Use leverage wisely and avoid excessive risk-taking.
• Monitor Positions: Regularly monitor open positions to manage risks and adjust orders accordingly.