Looking to amplify your trading position? With CoinEx’s margin trading feature, users can borrow some asset up to 5X their initial capital to maximise potential returns. In this article, we will use BNB as an example to demonstrate how to use leverage effectively on CoinEx.
Getting Started: Borrowing BNB with Leverage
To begin, visit the BNB/USDT trading pair on CoinEx and switch to the [Margin Trading] tab. If you haven’t already, transfer funds from your Spot Account to your Margin Account, this collateral is required before you can borrow assets.
Once you’re in the margin interface, select whether to borrow BNB or USDT. After borrowing, you can execute your trade based on market analysis, whether you’re going long (buying) or short (selling). Once the trade is complete, return to the “Repay” section, choose the borrowed asset, and repay the principal along with any accrued interest.
(As of 10 April, 2025)
Example Scenario: Using 5X Leverage to Trade BNB
Suppose you have 100 USDT in your margin account. With 5X leverage, you can borrow an additional 400 USDT worth of BNB, giving you a total of 500 USDT to trade.
- Profitable Trade: If BNB’s price increases and your position is worth 550 USDT, you repay the 400 USDT plus a small interest fee (e.g., 0.0003 BNB for 1 hour at a daily rate of 0.24%). Your net profit is approximately 150 USDT minus the interest.
- Losing Trade: If BNB’s price falls and your position value drops to 400 USDT, you still need to repay the full 400 USDT plus interest, resulting in a loss of nearly 100 USDT. The actual cost may be higher depending on how long you hold the position and interest rate fluctuations.
Note: Participating in events, transferring assets, and placing orders may extend the borrowing time and increase interest costs. For demonstration, price and rate are simplified.
Understanding Loan Terms and Interest
1. Interest Charges
Interest is calculated based on the rate at the time of borrowing and accrues hourly. For example, borrowing 3 BNB at a daily rate of 0.24% results in an hourly interest of: Interest = (3 BNB × 0.24%) ÷ 24 = 0.0003 BNB
Keep in mind that actual costs may vary due to holding time and market interest rate changes. The borrowing interest rate is also affected by VIP level. VIP 1-5 enjoys preferential interest rates, please check Fees Standard for details.
2. Repayment Priority
Loans are repaid in the order they were taken, with interest deducted before the principal. Once both are fully repaid, the loan is marked as “Paid,” and interest stops accruing.
3. Loan Duration
The default term is 10 days. If repayment is not completed within this period, the loan will be automatically renewed.
4. Auto-Renewal Policy
CoinEx automatically renews your loan with the most up-to-date interest rate and terms. If renewal fails (e.g., due to insufficient funds), a 24-hour grace period is applied before forced repayment is initiated.
5. Loan Reminders
If you’ve disabled auto-renewal, you’ll receive expiration notifications 72, 24, 8 and 1 hour before your loan expires. For auto-renewed loans, you'll be notified of any renewal failure or forced repayment risk.
Frequently Asked Questions
Q1: How do I access margin trading on CoinEx?
Log in to your CoinEx account, go to the asset you want to borrow, and select the Margin tab.
Q2: How is interest calculated for borrowing?
Interest is calculated hourly and depends on real-time market rates. VIP users benefit from preferential rates.
Q3: What happens if I can’t repay my loan on time?
If you fail to repay, the loan will auto-renew. If your margin risk ratio drops below the liquidation threshold, your position may be forcibly liquidated.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Leveraged trading carries risk; trade responsibly.
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