What interest rate is charged on margin positions?
The interest rate charged on each position is determined by you through the Funding page or via Ethfinex’s finance matching system which automatically chooses the best interest rate currently available to fulfill your order. See Opening a Margin position.
What happens to my margin position when the underlying funds run out?
When your margin funding expires and your position is still open, the system will automatically reserve the required margin funding at the available rate.
When margin funding used for your active margin trading position expires, the platform will always use any manually reserved margin funding first and, if needed, will fill the remainder automatically with the currently available rates.
If you want more control over the rate and period of the margin funding, you can manually reserve margin funding via the Funding page before your current funding expires.
What if my funding runs out and there's no more left to borrow?
In the event that all of the offers in the funding book are exhausted and no funding is available to sustain active margin positions, Ethfinex will become the lender of last reserve for already active positions that need financing.
Can I open multiple margin positions for the same pair?
No. Only one margin position per trading pair can be opened at a time. With an open margin position, each time a new order is made on margin, if the previous position is not closed, the base price is adjusted to reflect the profit/loss partially realized by the new order.
What is the Base price?
On Ethfinex, you can only have one position opened per pair at a time. Every time an order is made on margin, if the position is not closed, the base price is adjusted to reflect the profit/loss partially realized by the new order. This is why the base price does not necessarily represent one trade price; rather, it represents the average price of the previous orders of this position. It is an approximation of the position’s breakeven price.
What is a settlement?
Settlement is the process of correcting a negative balance.
Example: A trader completes a trade and Ethfinex charges a trading fee of 0.1 BTC, but the trader only has US dollars in his wallet and no BTC. Ethfinex will then settle the charge by converting the necessary USD available in the trader’s account into BTC. To make this conversion, the rate used is the last ask price (if Ethfinex settles a negative BTC balance) or bid price (if Ethfinex settles a negative USD balance). This debit is displayed in your settled balance and a credit to the other balance.
Why do my BTC profits convert to USD upon closing a trade?
Profit/Loss (P/L) in margin trading on Ethfinex is always settled in the last symbol of a pair.
If you open a long, you buy BTC using margin funding (USD), if the price rises you sell the BTC and realized P/L, which equals [amount] * ( [sell price] - [buy price]) , will be for you to keep, which will be USD (or to pay if you realized a loss).
If you open a short, you sell BTC (your own BTC + margin funding BTC) and when the price drops, you buy them back to close the position. [Amount] * ( [buy price] - [sell price]) will be for you to keep, which will be in USD (or to pay if you realized a loss). This is again in USD, as you will have a bit of USD to spare in order to buy back the BTC previously sold at a higher price.
If you only want to hold BTC after closing a margin trade, you will need to manually exchange USD profits into BTC using the BTC/USD pair by highlighting "Exchange" in the Order Form box on the trading page.
Why is my reserved funding not being used for my position?
Margin longing/buying of ETH would require you to borrow USD to buy ETH on the order book. Margin shorting/selling of ETH would require you to borrow ETH to sell on the order book.
For a quick reference, you will see your borrowed funding type reflected in your position's "Funding Cost" on the Trading page. If you borrowed USD to fund the position, Funding Cost will accrue in USD. If you borrowed ETH to fund the position, Funding Cost will accrue in ETH.
What does "No Reserve" mean?
When trading on margin, you need to receive funding from funding providers. If there is no funding provider available, your order will be canceled with the status message No Reserve, which means that no funding was available when the order should have executed.
In what order will my open margin positions close?
The position will close based on the borrowed funding’s interest rate. A position using funding at the highest rate is closed first.
Why am I receiving the following message - "Cannot place additional orders at the moment"?
This error can happen for two reasons-
- You hit our anti-spam limit, which prevents users from placing more than 256 orders within a 2-minute time frame.
- You hit our throttle dynamic limit, which prevents users from placing a new order when the trade engine lag increases. It is very rare, generally does not last more than a few seconds, and is designed to mitigate attacks by spam orders, regulate lag during a spike in activity and avoid flash crashes.