What is the position by position leveraged transaction of Coin Safety? What are its trading rules?
As we all know, the Currency Exchange is a trading platform with a variety of virtual currency trading methods, among which the leverage trading is favored by investors. The leverage trading of the Currency Exchange is not only applicable to full position leverage and position by position leverage, but also can directly select position by position or full position leverage from the new version of the trading page. However, when it comes to position by position leverage, many investors are ignorant. Therefore, some novice investors have recently asked Xiao Bian what is the position by position leveraged trading of Yuanan? What are its trading rules? Next, let's have a look.
What is the position by position leveraged trading of Coin Safety?
A transaction pair is a separate warehouse by warehouse account. Therefore, specific warehouse by warehouse accounts can only transfer to, own and borrow the currency of the transaction pair, such as BTCUSDT warehouse by warehouse accounts, which can only transfer to BTC and USDT; You can open multiple trading pair warehouse by warehouse accounts.
The positions of each trading pair are separate. If you need to add positions, even if you have sufficient assets under other warehouse by warehouse accounts or full warehouse accounts, you will not automatically add positions to this transaction pair, and you must manually add positions.
Each warehouse by warehouse account has an independent risk rate, which is measured separately according to the assets and liabilities held under the transaction pair.
The risk isolation of each warehouse by warehouse account has no impact on other warehouse by warehouse accounts in case of exposure risk.
Yuan'an Position by Position Leverage Trading Rules
1. Mortgagable property
In the warehouse by warehouse leverage mode, the platform sets different warehouse by warehouse leverage sub accounts according to each different transaction pair. The net assets in each position by position leverage sub account can only be used as collateral under the transaction pair.
Each warehouse by warehouse sub account can only accept the target currency and billing currency as the guarantee in the sub account.
2. Loan assets
In the warehouse by warehouse leverage mode, the customer can only borrow two currencies under the current transaction pair as the loan property. To ensure asset security, the platform has the right to adjust the borrowing limit and transaction authority of the target currency and billing currency in each warehouse by warehouse account.
3. Lending rules
The large borrowing limit of the warehouse by warehouse leverage account refers to the total amount of currency that the user can borrow at most under the warehouse by warehouse account. The platform will calculate the user's large borrowing limit according to the limit of the number of loans that can be made to the warehouse by warehouse leverage account and its platform risk control rules.
In this standard, large borrowing limit=net assets in each warehouse by warehouse account * (large leverage multiple in the current warehouse by warehouse account - 1) - outstanding property.
After the currency loan is completed, the borrowed digital currency is immediately transferred to the customer's corresponding warehouse by warehouse leverage account, and the platform system immediately begins to calculate interest. The customer can use the borrowed digital currency to carry out position by position leverage trading in the corresponding trading pair.
4. Calculation rules of loan interest rate
Interest calculation rules: the simple interest shall be calculated at the hourly rate, and the interest less than one hour shall be counted as one hour. The interest hour is calculated based on the specific borrowing time of the user, that is, once the loan is completed, it will be recorded as 1 hour, and the next full hour will be recorded as 2 hours. The calculation formula is: interest=loan amount (capital) * (daily interest rate/24) * loan hours
The user can repay the loan in advance and pay the interest according to the actual borrowing hour. If the borrowing time is less than one hour, the interest will be calculated as one hour. The user pays the interest first and then the principal when repaying the loan.
The loan interest is included in the risk rate when it is not repaid. If the interest is not repaid for a long time, it may reduce the risk rate of the current position by position leverage account below the closing line, causing the risk of forced closing of the account. Customers are requested to settle interest on a regular basis or set aside sufficient available balance in the position by position leverage account.
Users cannot enjoy BNB interest deduction discount in position by position leveraged transactions.
The system will adjust the lending rate at any time according to the market development
Automatic loan standard: customers can apply automatic loan function on the position by position leverage transaction page.
5. Repayment Rules
The user can manually select the loan property that must be returned. When selecting the loan repayment quantity, the user can select to repay the loan in whole or in part. The interest shall be repaid first and then the principal shall be repaid. The system will calculate the interest according to the new borrowed quantity in the next hour.
The corresponding loan currency shall be repaid at the time of repayment and cannot be replaced by other assets. Therefore, the customer must ensure that there is sufficient such property in the current position by position leverage account at the time of repayment.
Automatic repayment standard: customers can apply the automatic repayment function on the leverage transaction page. With this function, when the order is closed, the system will use the funds obtained after the transaction to automatically repay the loan. Automatic repayment will only be carried out after the order is completely completed. If the amount of funds is not enough to repay the user's loan property after the order is closed, the system will select 90% of the loan property to repay, and the rest needs to be repaid manually by the customer.
Speaking of this, I believe you have a certain understanding of what is the position by position leveraged trading of Coin Safety and how its trading rules are. In general, Xiaobian also reminds investors that leverage is a tool for investors to test their investment skills. If investors have strong market analysis ability, leverage will undoubtedly become a good partner for investors to expand their profits. But if investors just want to gamble on market trends with the help of luck, Xiaobian advises you to avoid leverage, because in this case, Leverage will only increase the individual business risk of investors. After all, investment is risky, and you need to be careful when entering the circle.