Increase Margin Mexc

Are you interested in maximizing your trading potential? Margin trading is an excellent strategy that allows you to borrow money from the platform, leveraging your funds for trading purposes. With up to 10 times leverage, Mexc margin trading offers an incredible opportunity to amplify your profits. However, it’s important to remember that the higher the leverage, the greater the risk. In this article, we will explore the benefits of using margin trading and guide you through the process step by step.

Why Use Margin Trading?

Margin trading offers the potential for multiple returns on your investments. If you have a bullish outlook on a particular cryptocurrency, you can use your principal as a margin to add leverage and open a long position. For instance, if you believe in the potential of BTC, you can borrow USDT while holding BTC, allowing you to buy even more BTC. If the market price rises, you can double or even triple your profits.

On the other hand, margin trading also allows you to profit from short-selling. If you have a bearish outlook on a specific crypto market, you can use your principal as a margin to open a short position by “selling” the currency. Then, when the market falls to an ideal price, you can buy back the crypto and repay the loan. This way, you can realize a profit from short-selling BTC.

How to Start Margin Trading on Mexc

Step 1: Open a Margin Account

To start margin trading on Mexc, you need to open a margin account. Simply log into your Mexc account and click on “Margin” in the top menu bar to access the margin trading interface. From there, click on “Open a Margin Account” to create your margin account.

Step 2: Transfer Funds as Collateral

Once you have your margin account, you need to transfer funds as collateral. Click on “Transfer” and transfer 1,000 USDT from your spot account to your margin account.

Step 3: Auto-Borrow Trade

Mexc offers an auto mode for borrowing and returning crypto. In this mode, the system automatically determines whether you need to borrow crypto based on your available assets and the number of orders you have placed. The system also calculates the interest on your loan. If you cancel an order before it is filled or partially filled, the system automatically repays the borrowed crypto to reduce the interest generated by your loan funds.

You can now take advantage of up to 10 times leverage for the BTC/USDT trading pair. With 10,000 USDT available, you can buy up to 0.16 BTC in margin trading when the BTC price is 60,000 USDT. You can try placing an order with 6 times leverage by entering the price as 60,000 and the quantity as 0.1.

Step 4: Auto-Repay Trade

When the BTC price reaches around 70,000 USDT, you can sell 0.1 BTC at the market price. Once the order is completed, you will receive 7,000 USDT. After the borrowed 5,000 USDT is automatically refunded, you will have 2,000 USDT left in your margin account, resulting in a profit of 1,000 USDT (excluding interest and commission).

Closing Thoughts

Margin trading can be a lucrative way to amplify your trades, but it also comes with increased risk. It’s crucial to educate yourself about margin trading and fully understand the potential risks involved before engaging in this strategy. Mexc Learn provides valuable resources and articles on margin trading to help you become proficient in this field.

Remember, trading crypto carries significant risk, and you may lose your invested capital. The information provided in this article is for educational purposes only and does not constitute financial advice. Make sure you carefully assess the risks involved before making any investment decisions.