how to trade with leverage on kucoin

Leverage trading on KuCoin enables traders to increase their profit potential by borrowing funds from the exchange and amplifying their trades.

Oct 29, 2024 at 07:26 pm

How to Leverage Trade on KuCoin

Leverage trading allows traders to amplify their potential profits by borrowing funds from a broker or exchange. KuCoin offers leverage trading on a wide range of assets, including cryptocurrencies, indices, and commodities.

Before You Start:

• Ensure you have a KuCoin account funded with sufficient assets.
• Understand the risks associated with leverage trading and consider your risk tolerance.

Step 1: Enable Leverage Trading

• Hover over "Trade" and select "Margin Trade."
• Click "Enable" and read the Margin User Agreement carefully.
• Mark "I understand and agree," and click "Enable."

Step 2: Choose a Trading Pair and Leverage

• Select a trading pair and navigate to its Spot Trading page.
• Click "Margin" above the chart.
• Adjust the leverage ratio using the slider or manually enter a value up to the maximum allowed.

Step 3: Place an Order

• Choose an order type (Limit, Market, or Stop-Market).
• Specify the order quantity and price.
• Click "Place Order."

Step 4: Monitor Your Position

• The order will execute, and your position will appear in the "Margin Trading" section under "My Positions."
• Monitor your position regularly to manage risk.

Step 5: Close Your Position

• When you're ready to close your position, place an order with the opposite sign.
• For example, if you have a long position, place a short order to close it.
• Once the order executes, your position will be closed.

Additional Considerations:

• KuCoin charges interest on borrowed funds, which is calculated daily.
• Liquidation may occur if your account equity drops below a certain level.
• Risk management is crucial with leverage trading. Use stop-loss orders and monitor your positions carefully.
• Consider using a lower leverage ratio if you're a beginner or don't want to expose yourself to excessive risk.