Borrowing and Repayments

Borrowing and repayments in margin trading are automatic processes that manage your account's liquidity when placing orders and depositing funds.

Borrowing

When you place an order in your margin account without having sufficient funds available, the system automatically borrows the required amount to fulfill the order. This allows you to trade with more capital than you have deposited.

How borrowing works:

• If your margin account balance is insufficient for an order, the system automatically borrows the shortfall
• The borrowed amount is added to your account to complete the trade
• You can continue to borrow as long as your margin level remains above the maintenance margin (the minimum margin level required to avoid forced liquidation)

Interest Charges: Interest on borrowed amounts is charged hourly. The interest rate varies by currency and is calculated based on the currency's configuration. To check the current interest rates and other borrowing parameters for each currency, refer to the Get margin available currencies endpoint, which provides the hourly interest rate applied to borrowed amounts.

Repayments

Repayment of borrowed funds is automatic and occurs when you process a deposit movement to your margin account. The system prioritizes repaying borrowed amounts before adding funds to your available balance.

How repayments work:

• When you deposit funds through the Funding your Margin Account process, the deposit is first used to repay any outstanding borrowed amounts
• Once all borrowed amounts are repaid, any remaining deposit is added to your available margin balance
• This automatic repayment helps reduce your borrowing costs by minimizing the accrual of interest charges