Kucoin Introduces Margin Trading: Everything You Need to Know

 Kucoin Introduces Margin Trading: Everything You Need to Know

Kucoin, one of the most popular altcoin exchanges, has just announced that it will be adding margin trading functionality to its platform. This feature, already widely available on conventional cryptocurrency exchanges like Poloniex, allows you to leverage your assets in order to make more profit from price fluctuations. Here’s everything you need to know about Kucoin’s new margin trading service!

What is a Margin Trade?

A margin trade is when you borrow some of the balance in your account from a cryptocurrency exchange and use it as collateral for larger trades. Margin trading has been around for a long time, but historically it's been dominated by large institutional traders with plenty of funds. Recently exchanges have started allowing regular traders to margin trade using kucoin margin trading with less risk and more potential profits than was possible before. The advantages are clear, but there are also disadvantages to consider before opening a margin trading position. For example, any borrowed money will be subject to interest rates and can be lost if the value of an underlying asset falls below what you originally borrowed it for. 

The process is relatively simple; users only need to click on Margin Trading within their user interface. In return they'll see two tabs - Borrow and Loan. On each tab there will be relevant information about how much can be borrowed and what interest rate will apply depending on whether the loan is short-term or long-term.

How Does it Work?

Margin trading allows users the ability to trade a large amount of cryptocurrency with a small amount of cryptocurrency. Simply put, margin trading is where you borrow money from a lending company (KCS) and then use that borrowed money as collateral for your other trades. One interesting thing about margin trading with kucoins margin trading platform is that it only charges a 0.2% fee per trade (which includes both leveraged and non-leveraged transactions), which is much lower than the average in the industry today of 1%. When deciding whether or not to go with Kucoin's new margin trading service, you will have to take into account not just the fees but also how difficult it is to use their interface. The interface itself can be confusing because there are many tools available but they are all on different pages rather than being on one page together. For example, if you want to check your open orders and see what positions you have open, this requires going through several different tabs within their platform before reaching that information. If they were able to combine all of these tools into one page then it would make using KuCoin easier overall.

How Do I Use It?

So, what is kucoin margin trading? As the name implies, this enables you to borrow funds from the exchange in order to trade more than you would normally be able to. It will increase your exposure and allow you place both buy and sell orders that are larger than your account balance. There are two sides of a trade-maker's market so every time there is an opening for either a buy or a sell transaction on the platform, the platform will automatically make margin calls. The only difference with KuCoin's system is that they take deposits as collateral instead of using other exchanges' coins. For example, if someone wants to borrow $10 worth of BTC they can do so at 10% interest rate but it requires a $100 deposit which then becomes locked until the trade has been completed (completed as long as no margin call occurs). It's important to note that the user borrowing money doesn't need to worry about completing their own trades because they're not holding any currency; they're just borrowing them. The borrower also needs to watch out for margin calls since if their account falls below 100% of their position, a margin call will occur and liquidate all positions except 100%. If a trader falls below 50% equity on his/her position, there will also be a liquidation triggered. Lastly, one should be aware that borrowed funds have expiration dates.

Important Note

Margin trading is a type of trading that allows traders who own a certain amount of tokens to borrow additional tokens from the exchange and trade with. Interested parties must deposit their funds on the exchange and pledge collateral for the additional borrowed coins. Kucoins margin trading service works for BTC, ETH, NEO and USDT pairs. The idea behind margin trading is that you can leverage your initial investment by borrowing more, thereby having more control over your trades. However, it's important to remember that leverage amplifies profits and losses - meaning if the market moves in your favor you stand to make much more money but also face bigger potential losses. If there's one lesson here it's this: do not forget about risk management! It's easy when trading with margin or buying higher-priced coins to get caught up in excitement and forget about how much you're spending or losing. You should always maintain a level head no matter what happens - otherwise it may be time to walk away from the table.