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Margin Trading on Coinmetro Explained

Sophie avatar
Written by Sophie
Updated over 3 weeks ago

Important Notice for UK Residents

Margin trading is currently unavailable for UK users.

Due to recent regulatory changes, Coinmetro has been required to disable margin trading for residents of the United Kingdom. UK clients can still access the Margin page, but will not be able to open new positions. Existing margin positions can only be closed, not expanded or reopened.

Margin trading allows you to trade with borrowed assets, enabling you to trade with larger amounts than your actual funds. At Coinmetro, you can also use 5x leverage to amplify your trades. Margin trading also allows you to short assets (sell assets you don’t own), hoping to buy them back later at a lower price and profit from the difference.

⚙️ How Does Margin Trading Work?

On the Coinmetro Margin Platform, every trade involves buying one asset and shorting another asset simultaneously.

Example:

  • If you buy BTC/EUR, you are buying BTC and shorting EUR.

  • If you sell BTC/EUR, you are shorting BTC and buying EUR.

The amount you short is automatically borrowed from Coinmetro or other lenders and returned once the trade is closed. You pay interest on the borrowed amount while the trade is open, which is usually minimal compared to your trading profits or losses.

Everything is handled automatically, so you can focus on your trading strategy.

🔄 Margin Trading vs. Exchange Trading

Exchange Trading:

  • You exchange one asset for another immediately.

  • Your wallet balances update instantly.

Margin Trading:

  • You place an order to buy or sell an asset against another.

  • Wallet balances do not update immediately.

  • Instead, an open position is created with a floating profit/loss (P/L) that updates automatically as the market changes.

Margin trading allows more flexibility, including long and short positions, and is ideal for more advanced trading strategies.

⚠️ Price Warnings

Coinmetro’s Price Warning feature helps you avoid unexpected losses due to slippage.

How It Works:

  • Slippage under 3%No warning

  • Slippage 3.00% – 4.99%Green warning

  • Slippage 5.00% – 9.99%Orange warning

  • Slippage 10%+Red warning

This warning appears when:

  • Placing a new market or limit order

  • Editing an open order

  • On both Exchange and Margin platforms

It does not:

  • Account for spreads (for now)

  • Appear when doubling or closing a % of active positions on Margin (for now)

Use this tool to trade smarter, react quickly, and stay in control of your positions.

🏫 Practice Safely with Demo Trading

Coinmetro’s Demo Platform lets you practice margin trading without any risk. Remember, this guide is educational only and not financial advice.


FAQs

💸 What is leverage in margin trading?

Leverage allows you to trade with more funds than you actually have, amplifying potential profits (and losses).

📊 Can I short sell an asset I don’t own?

Yes! Margin trading allows you to short assets, aiming to buy them back later at a lower price for profit.

⚠️ What is slippage, and why is the Price Warning important?

Slippage occurs when the execution price differs from your order price. Price Warnings help you avoid orders that could lose more than 3% due to slippage.

🔁 Does margin trading update my wallet balance immediately?

No. Margin trades create open positions with floating P/L, rather than updating your wallet balances instantly.

🧪 Can I try margin trading without risk?

Yes! Use the Demo Platform to practice and learn strategies without risking real money.

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