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.
Margin trading means borrowing to trade, and the loan does not care how the trade goes. Interest accrues while it is open and liquidation closes the position if collateral runs short. This page describes the mechanics; it is not a recommendation to borrow.
Before you start
- Collateral transferred into the margin account.
- A margin ratio you intend to keep clear of, chosen before the position is opened.
- The risk disclosure read rather than skimmed.
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, Midas sends warnings, though a fast market can outrun them. 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.
If something goes wrong
- The position is smaller than expected for the collateral.
- Borrowing limits depend on the asset and tier. The borrow panel shows what is actually available against your collateral.
- The margin ratio deteriorated without the position moving.
- Accrued interest and a change in collateral value both move the ratio. It is not a static number.
- You are unsure whether you have a margin position open at all.
- The margin account lists outstanding loans separately from positions. A repaid loan with no position still shows a zero balance rather than disappearing, which is the clearest way to confirm you are flat.
Frequently asked questions
- How is margin different from futures?
- Margin borrows an asset to trade spot; futures is a derivative contract. Both apply leverage, and both liquidate.
- When does interest accrue?
- While the loan is outstanding, on the published schedule — including overnight and through weekends.
- Can I lose more than my collateral?
- Liquidation exists to prevent it, but a fast market is exactly when such mechanisms are under most stress. Lower leverage is the reliable protection.
- Can I turn margin off once enabled?
- Repay outstanding loans and the account returns to an ordinary balance. Enabling it does not commit you to borrowing.