Margin Trading Terms

2025-07-22 UTC
291,312 Read
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1.Margin Trading:
At Gate, investors use their own assets as margin/collateral to borrow great sums of capital for trading. Investors must repay the loans within the time limit.

2.Base Currency:
The coin being traded. For example, in the BTC/USDT trading pair, BTC is the base currency.

3.Quote Currency:
The currency used for pricing. For example, in the BTC/USDT trading pair, USDT is the quote currency.

4.Total Assets:
The combined balance of the Spot Account and Margin Account, including Available + Frozen.

5.Transferred Assets:
Assets transferred from the Spot Account into the Margin Account.

6.Borrowed Assets:
Assets borrowed using the transferred assets as margin.

7.Available Assets:
Assets in the Margin Account available for placing orders, including transferred and borrowed amounts.

8.Frozen:
Assets in the Margin Account that are locked, typically due to pending orders.

9.Buy (Long):
In a BTC/USDT trading pair, if one anticipates BTC will rise, they can borrow USDT to buy BTC at a lower price and sell at a higher price to earn a profit.

10.Sell (Short):
In a BTC/USDT trading pair, if one anticipates BTC will fall, they can borrow BTC to sell high and buy back at a lower price to earn a profit.

11.Maintenance Margin Ratio (MMR):
The MMR is a risk indicator for the account. Formula: MMR = Account Net Assets ÷ Maintenance Margin. The higher the MMR, the lower the leverage risk.

12.Liquidation:
When the MMR ≤ 100%, liquidation will be triggered. Your margin will be used to repay the loan, and a 2% liquidation fee will be charged.

13.Est. Liq. Price:
The estimated price at which liquidation will be triggered if the MMR reaches 100%.

Gate reserves the final right to interpret the product.



The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
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