Opening a margin position

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

Opening a margin position

To open a margin position, you must first apply for this advanced feature by passing the required product quiz.

Once you have been granted access to margin trading, you may transfer assets from your spot account to your margin account by choosing Transfer on the Trade screen.

To begin margin trading:

  1. Go to the left-hand navigation and choose Trade.
    Trade icon in left-hand navigation
  2. Choose Margin and Buy/Sell.
    • Choose Market if you want the transaction to execute at the current market price, or
    • Choose Limit if you wish to buy/sell an asset at a specified desired price, or better
    • Choose Stop Limit if you wish to buy/sell an asset using both a stop price (a price that activates a limit order when reached), and a limit price for the order to be executed once reached, or better.
    Margin trading tab selected and the sell button selected
  3. Enter the Amount, Price, and Time in Force.
    Margin Sell order with price, amount, and time in force
  4. Confirm Buy or Sell to place the margin order.

Placing a margin buy order without fiat

You can place a margin buy order without fiat in the margin account as long as there is adequate cryptocurrency in the margin account. You may borrow assets from Bullish to buy more than what would otherwise be available based on the balance in your margin account.

Placing a margin sell order without cryptocurrency

You can place a margin sell order without cryptocurrency in the margin account as long as there is adequate fiat in the margin account. You may borrow from Bullish to sell more cryptocurrency than is held in your margin account based on the balance in the margin account.

Leverage disabled

Leverage is disabled when:

  • The lending pool is depleted and no more liquidity is available for margin lending.
  • You have not passed the required margin trading product quiz or have not yet applied for this advanced feature.
  • Bullish determines that leverage for your account or accounts generally should be disabled for regulatory purposes or other reasons.

Calculating buying or selling power

The formulas for calculating buying power and selling power are:

  • Buying power (USD) = USD balance * 3 + (cryptocurrency balance * execution price) * 2
    Margin tab showing Buying Power
  • Selling power (cryptocurrency) = (USD balance / execution price) * 2 + cryptocurrency balance * 3
    Margin tab showing Selling Power

For example: Buying power (USD) = 0*3+(1*19946.3)*2

Buying power is calculated using the leverage ratio and execution price.

Selling power (cryptocurrency) = (0/19,946.3)*2+1*3

Identifying a margin buy or margin sell order for a filled position

To identify a margin buy (long position):

  1. Go to the left-hand navigation and choose Trade.
    Trade icon in left-hand navigation
  2. Choose Margin Positions under the Price Chart
  3. Under Margin Positions, locate Size and Loan Amount.
    • The Size amount is positive.
    • The Loan Amount is USD which indicates that fiat was borrowed to buy more cryptocurrency.
    Margin Positions showing Sell Order Size and Loan Amount

To identify margin sell (short position):

  1. Go to the left-hand navigation and choose Trade.
  2. Choose Margin Positions under the Price Chart.
  3. Under Margin Positions, locate Size and Loan Amount.
    • The Size amount is negative and red in color.
    • The Loan Amount is cryptocurrency which indicates cryptocurrency was borrowed.
    Margin Positions showing Buy Order Size and Loan Amount

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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