Crypto.com Exchange Margin Trading Tutorial

Introduction to Margin Trading on Crypto.com Exchange

• Margin trading is enabled on the right-hand side of the spot trading page
• It allows users to trade with more than the collateral in their account
• Crypto.com provides leverage, but users need to have some collateral in their account

How Margin Trading Works

• Users can trade with 2x leverage, for example, with $1,000 in their account, they can open a $2,000 position
• The percentage move of the trade is larger in relation to the original capital
• If the asset price goes up 50%, the user's original capital will increase by 100%
• However, if the price falls 50%, the user's original capital will be wiped out

Key Terms and Concepts

• Wallet Balance: the total value of the account, including cash, crypto, and open positions
• Available Margin: the amount available to open new margin positions
• Effective Leverage: the leverage used based on the account balance and open positions
• Wallet Health: ensures that Crypto.com won't take any bad losses, if the account health is in good condition, there are no issues

Managing Margin Trades

• Users can create sub-accounts to segregate different strategies and trades
• Margin trading fees are the same as spot trading fees
• Interest rates are charged on borrowed assets, and are subject to change based on market conditions
• Users can pay off margin loans by depositing assets or selling some of the assets in their account

Risks and Precautions

• Margin trading can be volatile, and users should be aware of the risks
• Using crypto as collateral can increase volatility, as the collateral value can also fall
• Leverage can turn sour quickly, and is not recommended for beginners

Additional Resources

• Video guides and trading fee discounts are available in the description below
• Users can find more information on futures trading and other Crypto.com Exchange guides.