How to profit from Margin Trading

How to trade on margin at BigONE in a bull market?

For example, let’s say you have 10,000 USDT in your margin account, and you want to trade in BTC/USDT. If you believe the spot price of BTC will rise from 10,000 USDT to 12,000 USDT, and the highest leverage BigONE offers in margin trading is up to 3x leverage, you can borrow 20,000 USDT from BigONE, and use the total 30,000 USDT to buy 3 BTC. After the spot price of BTC rises to 12,000 USDT, you can sell 3 BTC at market price, and repay the 20,000 USDT principal. You will earn a profit of 3 * (12,000 - 10,000) = 6,000 USDT (assuming no interest and fees), instead of the 2,000 USDT profit you will earn without any leverage.

How to trade on margin at BigONE in a bear market?

For example, let’s say you have 10,000 USDT in your margin account, and you want to trade in BTC/USDT. If you believe the spot price of BTC will fall from 10,000 USDT to 8,000 USDT, and the highest leverage BigONE offers in margin trading is up to 3x leverage, you can borrow 2 BTC (since the spot price of BTC is 10,000 USDT/BTC at the moment), and sell the borrowed BTC at 10,000 USDT/BTC for 20,000 USDT. After the spot price of BTC falls to 8,000 USDT, you can buy 2 BTC at 8,000 USDT/BTC, and repay the 2 BTC principal. You will earn a profit of total 20,000 - (8,000 * 2) = 4,000 USDT (assuming no interest and fees). Margin trading allows you to profit in a bear market via short selling.