Margin Trading Guide

Margin trading amplifies investment outcomes by allowing you to control larger positions with a smaller amount of capital. This means you can potentially earn greater returns from smaller investments and even double your profits. The first step in margin trading is borrowing funds. Once funds are borrowed, you can enter the trading phase — either going long or short — and finally repay both the borrowed amount and the interest.

This guide covers the three main components of margin trading: Borrowing, Trading and Repayment.

Step-by-step instructions are below.

1. Borrowing Funds

1.1 Log in to the FameEX website. In the top navigation bar, click ‘Spot’ > ‘Margin’ to access the margin trading page. Then, select the trading pair you want to use.

Note: Assets in your FameEX margin account are independent per trading pair. If one pair faces a margin call or liquidation, assets in other pairs will remain unaffected.

1.2 Transfer Collateral: On the right side of the margin trading page, click ‘Transfer’ to move assets from another account to your margin account as collateral. Or, you can go to ‘Assets’ > ‘Margin’ and click ‘Transfer’.

1.3 After clicking ‘Transfer’, a pop-up window will appear. Choose the base or quote currency you want to transfer, enter the amount, verify the details, and click ‘Confirm’ to complete the transfer.

1.4 Borrow Assets: Once the collateral has been successfully transferred, click ‘Borrow’ at the bottom-right of the margin trading page.

1.5 A borrow pop-up window will appear, showing the maximum borrowable amount based on the transferred collateral and selected leverage ratio. Enter the desired borrowing amount according to your needs. If the platform's available collateral is insufficient, reduce the borrowing amount. If sufficient, the borrowed amount will be credited to your account immediately.

Note: Borrowing interest rates are subject to change. The actual rate will be displayed in real-time on the page.

1.6 View Borrowed Amount: You can view your borrowed assets in ‘Assets’ > ‘Margin’.

1.7 Borrowing Records: In ‘Margin Trading’ > ‘Recent Borrowing History’, you can review the borrowing time, hourly interest rate, and interest history.

Note: Each cryptocurrency has minimum and maximum borrowing limits. If your collateral is below the required threshold, borrowing won't be possible. Ensure you have enough collateral in your margin account. This completes Step 1: Borrowing.

2. Margin Trading

Once you've borrowed funds, you can begin trading using either long or short strategies.

2.1 Long (Buy): Going long means buying with the expectation that the asset’s price will rise. After transferring collateral and borrowing funds, you can buy low and sell high, then repay your borrowings and pocket the difference as profit. When opening a long position, you need to borrow USDT from the platform, as you will be using USDT to purchase assets at a lower price.

*Here is an example of trading BTC/USDT:

1) On the margin trading page, place a buy order (limit or market).

2) When the price rises to your target, place a sell order (limit or market).

3) Sell the asset at a higher price, repay the borrowed USDT plus interest, and keep the profit. The greater the price difference, the higher your profit from the long position.

2.2 Short (Sell): Going short involves selling an asset you’ve borrowed, expecting its price to fall. You sell high, then buy it back at a lower price, returning the borrowed coins and earning the difference.

When shorting, you need to borrow the trading currency — for example, BTC — to sell at a high price.

*Here is an example of trading BTC/USDT:

1) On the margin trading page, place a sell order (limit or market).

2) When the price drops, place a buy order (limit or market) to buy the asset again.

3) Return the borrowed BTC plus interest, and the difference becomes your profit. The greater the price difference, the higher your profit from the short position.

Note: Margin trading magnifies both profits and losses. While correct market predictions can yield significant returns, incorrect predictions can lead to amplified losses. High leverage is not recommended for inexperienced traders, as it increases the risk of margin calls or liquidation — potentially exceeding your account balance.

3. Repay Borrowed Funds and Interest

3.1 Repayment Process: When it's time to repay your borrowed funds and interest, click ‘Repay’ on the Margin Trading page.

Each borrowed currency is tracked individually. When repaying, you must cover both the borrowed amount and any accrued interest.

3.2 After clicking 'Repay', a repayment pop-up window will appear. Enter the amount to repay and click the 'Repay' button after verifying the details. If the available balance in your margin account is insufficient to cover the borrowed amount and interest, please transfer additional funds to your margin account timely.