Login your MEXC account, choose [Trade] on the topmenu bar and click Margin Trading in the dropdrown.
- Open New Margin Account.
Confirm account Activation and Accept Margin Transaction Agreement
- Transfer Assets from Spot Account to Margin Account in your Walllet
What is Margin Trading?
Margin trading refers to using the principal as a margin to borrow money from the platform to leverage up the funds for trading. At present, MEXC margin trading supports up to 10 times leverage, which amplifies the profit ten times, while the risk of loss will also be amplified ten times. So please control the risk when using margin trading.
Why Use Margin Trading?
1. Multiple returns can be achieved. If you are bullish on certain crypto, you can use the principal as a margin to add leverage to the crypto, and both the principal and the borrowed crypto will “buy” the crypto to open a long position. For example, if you are bullish on the BTC market, you can borrow USDT while holding BTC, and then buy more BTC. If the market price rises, you can double/triple the income.
2. Short-selling income can be realized. If you are bearish on the market of certain crypto, you can use the principal as a margin to open a short position by “selling” the currency, and then “buying” the crypto to repay when the market falls to an ideal price. For example, if you are bearish on the BTC market, you can borrow BTC while holding USDT, and then sell it. If the market falls, you can buy back BTC and repay the loan. Thus, you can realize the profit of short BTC.
Do Your Own Research
Margin trading is a way of trading by borrowing to amplify the principal. It may achieve multiple increases in income, but the risk will also increase as the leverage increases.
You can learn margin trading knowledge and become proficient by reading other margin-related articles in MEXC Academy.