How to add margin to Gemini contract

Before activating margin trading on Gemini, eligible account holders must pass KYC verification and maintain a minimum account balance of $50,000.

Nov 11, 2024 at 06:20 am

Step-by-Step Guide to Adding Margin to Gemini Contracts

Step 1: Eligibility Check

• Ensure that you meet Gemini's margin trading eligibility criteria:

  • Must be a resident of a supported jurisdiction
  • Complete the KYC (Know Your Customer) process
  • Have a minimum account balance of $50,000
• Note that margin trading involves risks and is not suitable for all investors.

Step 2: Margin Funding

• Fund your Gemini account with the desired amount that you wish to allocate for margin trading.
• You can use USD, USDC, or GUSD as collateral for your margin trades.

Step 3: Enable Margin Trading

• Log into your Gemini account and navigate to the "Trading" section.
• Click on "Contracts."
• Under "Funding," click on "Enable Margin Trading."
• Review and agree to the terms and conditions.

Step 4: Set Loan-to-Value (LTV) Ratio

• Determine the amount of leverage you wish to utilize, up to a maximum of 10x (Loan-to-Value ratio of 90%).
• The higher the LTV, the greater the potential for both rewards and losses.

Step 5: Select Trading Assets

• Choose the trading pairs that you wish to trade on margin.
• Refer to the Gemini support page for a list of eligible trading assets.

Step 6: Open Margin Position

• Use the Gemini trading interface to place a margin order.
• Specify the order type, such as "Maker" or "Taker."
• Enter the trade parameters, including the size, entry price, and profit/loss targets.

Step 7: Manage Margin Position

• Monitor your margin position closely to ensure that you maintain a sufficient level of collateral.
• Gemini provides a "Risk Management Dashboard" that allows you to track your LTV and potential liquidation price.

Step 8: Close Margin Position

• Once you are satisfied with your trading performance, take steps to close your margin position.
• This involves selling any open trades and repaying any outstanding loans.
• Failure to close an underperforming margin position promptly can lead to significant losses.