Repaying your margin loan

You can pay a margin loan using your own assets or by placing a market order.

Warning: Margin trading is a high risk activity. Please read carefully the Risk Warnings on bullish.com.

Paying with account assets

To repay a margin loan using your assets:

  1. Go to the Order Form.
  2. Choose Transfer.
  3. Transfer funds from your spot account to your margin account.

Paying with market orders

Place an order in the opposite direction. For example, if you placed a 1 BTC buy order (long position) on margin, you can place a sell order (short position) to close the long position and vice versa.

Margin interest is calculated starting from the time of opening a margin position until the position is closed. Interest compounds hourly on top of the loan amount. You will see your loan amount increase accordingly.

Paying margin interest

When paying off margin interest, the interest will be repaid first and then the principal.

You can repay your margin loan in two ways:

  • Transfer funds from your spot account to your margin account, or
  • Close the margin position by placing an order in the opposite direction. For example, if you placed a 1 BTC margin buy order (long position), you can place a margin sell order (short position) to close the long position.

Important: Although this may pay off the margin interest, if there are not enough assets when you close your position to cover the loan, the loan will still need to be paid.

Viewing margin interest

Daily Interest Rate%

When placing a margin order, the daily interest rate of your position will be shown in the Order Confirmation pop-up window before. Once filled, details of your position, including margin interest, will be shown on the Trade and Orders screens.

To view the interest rate for your filled margin positions:

  1. Go to the left-hand navigation and choose Trade.
  2. Choose the Margin Positions tab under the Price Chart/Depth Chart.
  3. View the Daily Interest Rate% column for any margin position under Margin Positions.

You can also view it on the Orders screen under the same Margin Positions tab.

To get the hourly interest rate, simply divide the Daily Interest Rate of your position by 24 (hours).

Accrued Interest

To view the accrued interest:

  1. Go to the left-hand navigation and choose History.
  2. Navigate to Interest to view details.

You can filter your search by currency pair and/or time span.

Liquidation timeframe

Liquidation can happen anytime after a margin call occurs, depending on the movement of the market. Since liquidation could happen immediately after a margin call, pay close attention to the market in order to avoid liquidation.

Late payment penalties

Margin interest cannot be paid late because the position will be liquidated before that occurs. When the collateral is insufficient to cover the margin loan, the position will be liquidated to keep the account balanced.

Important: Automated market making is available within the upper and lower price boundaries of our range-bound liquidity pools and for our standard liquidity pools. Returns may vary with our range-bound versus standard liquidity pools. Learn more by reviewing important information about our range-bound and standard liquidity pools at https://bullish.com/legal/range-bound-liquidity-pools. 

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