Understanding Leverage Trading
Spot leverage trading is a margin-based system that allows you to borrow funds to amplify long/short positions using held cryptocurrencies as collateral. In OKX's unified account mode, successful leverage trades create corresponding long/short positions where gains/losses from market fluctuations are displayed. Borrowed assets appear as liabilities on your position and cannot be withdrawn - repaying these liabilities closes your position.
Step-by-Step Trading Process
1. Fund Transfer
Prerequisite: Move assets to your trading account
- Open OKX App → Tap [Assets] → [Fund Transfer]
- Select currency (e.g., USDT)
- Set transfer: [Fund Account] → [Trading Account]
- Enter amount → Confirm
👉 Master fund transfers in 90 seconds
2. Long Position (Buy)
Opening Position (BTC/USDT example):
- Navigate: [Trade] → [Spot] → Enable [Leverage]
Configure:
- Margin type (Cross/Isolated)
- Order type (Limit)
- Collateral (USDT)
- Leverage multiplier
- Enter price/quantity → Tap [Buy BTC] → Confirm
Closing Position:
- Manual: [Positions] → Select → [Close] → Set price/quantity
Advanced Options:
- Stop-Loss/Take-Profit: Automate exits
- Market Close: Instant full-position liquidation
Position Tracking: View real-time data including entry price, liquidation estimate, and P&L in USDT.
3. Short Position (Sell)
Opening Position:
Follow identical steps as long positions, but select [Sell BTC]
Closing Position:
Same procedures apply with inverted logic
Key Features
Interest Calculation Rules
Interest Triggers:
- Liabilities in cross/isolated modes accrue interest
- Cross-currency accounts enjoy interest-free thresholds for unrealized contract P&L
Billing Cycle:
- Hourly interest calculations
- Charges deducted at midnight (UTC+0)
- Example: Borrow at 22:55 → First interest logged at 23:00 → Deducted at 24:00
FAQs
Q: Can I withdraw borrowed funds?
A: No - borrowed assets remain locked as liabilities until position closure.
Q: What happens if my position hits liquidation price?
A: The system automatically closes your position to prevent further losses.
Q: How often is interest charged?
A: Computed hourly, deducted once daily at 00:00 UTC.
Q: Why might my limit order fail?
A: During extreme volatility, orders may not execute if price gaps occur.
👉 Advanced leverage trading strategies
Pro Tips
- Use stop-loss orders to mitigate risk
- Monitor positions regularly in volatile markets
- Start with lower leverage to practice risk management