【What is Margin Trading】
Margin trading is to magnify the principal several times, that is, getting the multiple returns with one times the principal. BW can support the principal up to 20 times the position, to magnify the return 20 times, but at the same time must bear the doubled risk of possible loss.
【Why Participating in Margin Trading】
The rational use of margin trading, not only can gain multiple returns in a bull market, in a bear market can also profit by selling short.
【The whole process of Margin Trading】
Open margin account—Transfer asset in—Request for loaning token—Margin trading (buy long/sell short)—Return borrowed token and interests
1. Please go to BW.com and log in, click【Margin trading】in navigation bar.
2.Read and agree the opening margin trading agreement.
3.Click【transfer funds】, transfer your asset from exchange account to margin account.
4.Users can choose which asset to be transferred；Tokens will be transferred within exchange account and margin account.
5.Borrowing tokens - User can click “loan”to start loaning token.
6.Margin trading have two ways to make profits
1）Sell short: borrow BBTC for selling short.
- If we predict that the price of BBTC will drop, we can borrow BBTC and sell BBTC.
- Then, when price dropped, we can buy BBTC at lower price and return the borrowed BBTC and interest to earn profits.
2）Buy long: borrow BUSDT for buying long.
- If we predict that the price of BBTC will increase, we can borrow BUSDT and buy BBTC.
- Then, when price increased, we can sell BBTC at higher price and return the borrowed BUSDT and interest to earn profits.
7.Returning tokens - User can click “repay”to start returning token.
*If user wants to withdrawal earned profits, user need to transfer the tokens from margin account to exchange account first, then, withdrawal tokens from exchange account.
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BW, Bit World, Better World
BW.com Global Operations Team
November 15, 2019