Getting Started with Spot Margin Trading on VALR
Spot margin trading is now available to all VALR users, allowing up to 5x leverage using ZAR, BTC, ETH, USDC, and USDT as collateral across multiple spot pairs on the exchange.
Unlock the Potential of Leverage on VALR
Debt plays a pivotal role in financial markets, and when used strategically, it becomes a powerful tool for crafting financial products. This is why we've developed a robust leveraged trading engine that facilitates the lending and borrowing of real balances for spot trading on our order books.
Spot margin trading on VALR enables you to take long/short positions, hedge trades, and efficiently manage your capital on the exchange with up to 5x leverage.
Pairs available for leverage on VALR as of 6:04 am 2 Nov, 2023 (UTC)
Benefits of Spot Margin Trading on VALR
1) Seamless Debt Management
Our user-friendly margin engine streamlines debt management. This means that you can automatically take on debt by trading more than your spot balance and repay it with ease - either by depositing the borrowed currency or trading back. This grants you the flexibility and control to manage your capital efficiently.
2) Cross Collateralisation
Our system is cross collateralised but isolated to individual subaccounts. Meaning, if you wish to isolate funds for trading with debt, you can simply open a new subaccount and trade from there without locking up any funds in other accounts.
3) Trading
Spot margin trading offers flexibility in:
Taking long/short positions
Hedging trades
Efficiently managing capital on our exchange
Our margin engine simplifies the management of spot debt because our system uses the following principles:
Net balances - positive balances represent account assets and if a balance falls below zero, it is debt.
Automatic repayment - any transaction that tops up an account balance above zero automatically repays debt.
Single measure of leverage - we calculate the effective leverage of a sub account using margin fraction which is simply the value of net account equity divided by total debt.
A Few Key Points to Keep in Mind
1) Margin trading carries inherent risks:
We encourage you to review our risk disclosures and familiarise yourself with margin trading on VALR using our comprehensive trading guide here.
2) Regulatory considerations:
To facilitate ZAR borrowing for spot margin trading, VALR must adhere to specific regulatory requirements.
If you have a business account and wish to borrow ZAR, please contact us here.
If you have an individual account, unfortunately you do not currently meet the criteria to borrow ZAR. However, there are other options for getting leveraged exposure to cryptocurrency using ZAR as collateral. Learn more here.
VALR’s Spot Margin Trading Starter Kit
If you require any assistance with enabling margin trading on VALR, contact our support team here.
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