Margin trading on UTEX – already here!

Trade with 30x leverage and short crypto – now on our exchange.

28 months ago

Crypto

We are happy to introduce UTEX-Margin, a new service that lets you use 30x more money than you have in your account to trade cryptocurrencies and open short positions. The service is integrated into the United Traders Exchange (UTEX) interface and uses dark-colored pages to distinguish itself from other sections.

We drew on years of experience in trading software development to create UTEX-Margin. Back in 2012, United Traders released Aurora, an in-house trading terminal, which was popular in Russia and neighboring countries for a long time.

If you are a professional trader familiar with cryptocurrency trading strategies and capable of managing risk – margin trading is an option.

Major features

30x leverage
14 cryptocurrencies to trade
Short selling option
Built-in risk management
Standard commission 0.2% per transaction and 0.11% overnight
Detailed reports on transactions and paid commissions

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Read the details below.

Trading with leverage

A user has a cache balance equal to the amount of real money in his account. It determines the purchasing power – the maximum amount of which transactions can be made. The value of purchasing power is the current cash balance multiplied by 30x leverage.

Example. Suppose, you for the first time replenished your UTEX-Margin account with $100. Your cache balance will be $100, and your purchasing power: $100 * 30 = $3000.

Buying power consists of two parts. The used part shows the total amount of open positions and active limit orders. The free part determines the limit for opening new positions and placing limit orders.

Example. If your buying power is $3000 and you have an open position worth $800 and an active limit order for $400, your used buying power is $1200 and your free buying power is $1800.

Trading Instruments

Currently, you can trade with leverage 14 cryptocurrencies in UTEX-Margin: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Stellar (XLM), Tezos (XTZ), ChainLink (LINK), TRON (TRON), Dash (DASH), OmiseGO (OMG), Basic Attention Token (BAT), Litecoin (LTC), EOS (EOS), Ethereum Classic (ETC). All coins are traded pared with the dollar. We plan to gradually add other instruments.

Short positions

In UTEX Margin, you can profit from cryptocurrency prices going down by using short positions. To perform this, just send a sell order, following which a negative balance on this coin will appear – a short position. To close it, you need to buy the same amount of coins.

Example. You have 0 BTC in your account. You send an order to sell 0.1 BTC at $60,000. The order is executed and you open a short position for -0.1 BTC. After a while, the BTC price goes down to $58,000. You buy 0.1 BTC at that price, thereby closing your short position. Your profit: ($60,000 - $58,000) * 0.1 = $200.

Commissions

UTEX-Margin charges two types of commissions:

1. Standard UTEX commission per transaction – 0.2%.

2. Overnight commission – 0.11% of the amount of open positions. Debited from the cash balance on a daily basis at 00:00 UTC (3:00 Moscow time). If there are no open positions at the time of debiting, no overnight commission shall be charged.

Profit and loss

The change in the cost of an open position is an unrealized profit or loss. When the position is closed, its profit is fixed and becomes realized.

At the end of each day at 00:00 UTC (3:00 Moscow time), the realized profit is added to the cache balance, then its value is reset.

Automatic deal closing

The new service comes with built-in risk management. The system automatically closes user's positions if his daily loss exceeds 70% of the cash balance or if there is less than $10 in the account. In the latter case, trading also gets blocked. To unblock it, you need to replenish your account.

Reports

UTEX-Margin users can access balance reports that show all movements of funds in the account: trading gains and losses over the day, commissions over the day, deposits and withdrawals. You can also view a daily trading report that contains the total volume of trades, open positions and profits, as well as details of the commissions collected.

Deposits and withdrawals

A separate account is used for margin trading. You can top it up on the service’s page by making a transfer from your main account on the United Traders platform. You can withdraw money only to your main United Traders account, free of charge. From there, you can withdraw money to your card or to your UTEX-Spot account, also free of charge. We will add more convenient deposit and withdrawal methods.

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Margin trading gives you the opportunity to make a profit many times more than spot trading. However, it also represents a far greater risk. Always evaluate your level of risk and remember that you take responsibility for your actions.