How Do Margins Work?

It’s important to know how margins impact your trades. It’s also helpful to understand how to use margin percentages so you can make your offers competitive.

What are margins? 

Margins are a way to set your offer price above or below the market price. They allow users to add a type of sellers’ or buyers’ “fee” when making a trade. 

How do margins relate to selling crypto?

When selling crypto, a positive margin (+) gives you profit since you are asking a trader to buy your crypto at a higher price than the current market price. When you sell crypto at a negative margin (-), this will lower your profit since you are asking to sell your crypto at a rate lower than the market price. 

How do margins relate to buying crypto?

When buying crypto, a positive margin (+) means that you’re buying crypto at a price higher than the market price, and a negative margin (-) means that you’re buying crypto at a lower price than the market. Buying crypto with a negative margin (-) typically means you save money. 

How it works:

  1. Start by creating an offer by clicking on the Create an Offer button at the top of the page. 
    How_Do_Margins_Work_-_Step_1.png
  2. After you decide to sell or buy crypto, and after you select a payment method, go to the trade pricing section.

  3. When setting up your trade, you will see a section called Offer Margin

    Note:

    Offer Margins are done in percentages not in specific currency amounts.

  4. You can make your Offer Margin either a positive (+) or negative (-)  percentage. 

  5. There are two options when making your Offer Margin. The first is the basic version, where you only decide on your percent Offer Margin. The other option is the advanced version. 

    How_Do_Margins_Work_-_Step_5.png

  6. In the advanced Offer Margin option, you can use the market price from different sources, like Gemini, Kraken, and  Binance. You can also choose the price point as well.
    How_Do_Margins_Work_-_Step_6.png
  7. After you complete the above steps, that’s it! You’ve successfully finished making your Offer Margin. You can continue filling out the rest of your offer like you normally would.

Articles in this section

See more