How to Get Started with Margin Trading
Use borrowed funds to amplify your spot trading. Learn how margin works, how to enable it, and place your first margin trade.
Transfer Collateral to Margin Account
Navigate to Wallets > Transfer and move assets from your Spot wallet to your Margin account. Supported collateral assets include USDT, BTC, ETH, and others. Your collateral determines how much you can borrow.
Understand Margin Leverage
Midas margin trading supports up to 20x leverage. This means you can borrow up to 19 times your collateral value for trading. Higher leverage amplifies potential profits and losses. The borrowed amount accrues interest over time based on the asset-specific lending rate.
Enable Margin Mode on the Trading Screen
On the Trade tab, switch from 'Spot' to 'Margin' using the tab selector at the top. You will see your margin balance, available borrowing power, and the current margin ratio displayed. Auto-borrow can be enabled in Settings to automatically borrow when you place orders exceeding your balance.
Place a Margin Trade
Place orders just like spot trading (Market, Limit, or Stop-Limit). The difference is that you can trade with more than your deposited amount by borrowing. When you buy, you borrow the quote asset (e.g., USDT). When you sell short, you borrow the base asset (e.g., BTC).
Monitor Your Margin Ratio
Your margin ratio reflects the health of your margin account. A higher ratio means more safety margin. As your ratio drops toward the maintenance requirement, you will receive warnings. If it falls below the liquidation threshold, positions will be automatically closed to repay loans. Always keep a comfortable buffer above the minimum.
Risk Disclaimer
Margin trading involves significant risk. Leveraged positions can result in losses exceeding your initial collateral. You are responsible for repaying all borrowed funds plus interest regardless of trading outcomes. This tutorial is for educational purposes only and does not constitute financial advice.