What is Margin Trading and How to Get Interest Free Loan on ProEX

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Last Updated on December 4, 2022 by Bitfinsider

Say you purchase $100 worth of bitcoin with the expectation that the price will increase by 20%. If it does, and you decide to cash out at that point, you will have made a profit of twenty dollars.

But what if you could purchase Bitcoin worth $1,000 with $100 of your own funds? In other words, what if you could trade using leverage? If you performed that, you would wind up with $200, which is essentially the same as doubling the amount of money you started with.

And what if you could use that $100 to make a profit by becoming a short seller by betting that the price of bitcoin will go down?

Well, you can. It’s called margin trading, and it’s a high-risk crypto method that allows you to multiply both gains and losses by using borrowed money, which is why it’s also known as “leverage.”

What is Margin Trading?

Trading on margin, also known as leveraged trading, is the process of placing wagers on cryptocurrency markets using “leverage,” also known as borrowed funds, while exposing only a portion of one’s own available financial resources. The minimum amount of cryptocurrency required to enter into a leveraged position is known as the margin.

Opening positions in margin trading can be done in one of the following ways:

  • When you take a short position, you are betting that the price will go down.
  • A bet that the price will continue to rise is known as a long position.

When you take a long position, you purchase a cryptocurrency with the intention of selling it in the future at a higher price. This allows you to capitalize on the price differential and generate a profit. It’s also possible to do this without the margin. When you take a short position, you borrow a cryptocurrency at its present price with the intention of repurchasing it at a lower price and making a profit from the difference.

The level of leverage can be depicted as a ratio, such as 20:1 or 100:1. If you have $2,000 in your trading account, and you want to open a long position with a leverage ratio of 100:1, this means that you will need to stump up collateral – using your own funds – equal to 1% of the size of your position in order to open the long position. The remaining 99% will be provided by the cryptocurrency exchange.

ProEX Announces 0% Interest Free Loan for Margin Trading

In order to celebrate the upgrading of the platform’s margin trading function, ProEX has launched an interest free loan campaign for leverage trading to reward new and old users. ProEX welcomes you to experience 0% interest free loan!

Why Trade with ProEX?

ProEX is the world’s leading multi-contract trading platform, provides bitcoin and various cryptocurrencies, perpetual contract trading, ETF and other digital asset trading functions, Staking Pool services.

ProEX is committed to creating a better trading environment for our clients, ProEX has got MSB certificate(Money Services Business) from the United States and Canada, the USA MSB license was issued by FinCEN after being rigorously reviewed by the Financial Crimes Enforcement Bureau, an agency of the US Department of the Treasury.

During the event, all users who have opened a leverage account and started borrowing will be free of interest for all leverage loans in the leverage trading area!

Start Margin Trading on ProEX with up to 3X Leverage and interest free loan

Event Duration: (UTC+8) 2022.11.28 00:00 – 2022.12.28 11:00

Event Guideline: 

  • Assets loaned before 11/28 will accrue 0 interest.
  • Assets loaned after 11/28 will accrue 0 interest.
  • After 11:00 on 12/28, all lent assets will resume to calculate interest (interest will be resumed in units of hours, if less than 1 hour will be recorded as 1 hour).
  • Interest calculation formula:

If the daily rate is 0.01%, then the hourly rate is: 0.01%/24
The calculation formula is: Interest = Loan Amount (0.01%/24) Loan Hours
For example: A borrows 1000 USDT at 13:20 and repays it at 14:15. The calculation of interest is: 1000*(0.01%/24)*1=0.00416667 USDT.

Event Notes:

  1. This activity is limited to users who have opened a margin account and borrowed money in margin trading;
  2. Users who use duplicate registered accounts to participate in the event will be disqualified from participating;
  3. During the event, if we find malicious brushing, etc., the loan funds will not be able to participate in the event, and the account of serious offenders will be frozen;
  4. Spot leveraged trading is not open to users in specific countries/regions, and whether to open spot leveraged trading depends on the relevant laws and regulations of the country/region where the user’s KYC is located;
  5. ProEX reserves the right to interpret, amend, suspend, terminate the method of activities and change the content of the version at any time.

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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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