Margin trading lets you open positions larger than your own collateral by borrowing from Bitso. That leverage can amplify gains, but it amplifies losses just as much. Before you place a margin order, make sure you understand the following.
1. Leverage amplifies losses
A 3× position moves 3× faster against you than a spot position of the same size. A 10% adverse price move on a 3× position is roughly a 30% hit to your collateral.
2. Liquidation is automatic and final
If your Margin Level falls to the Maintenance Margin Ratio (1.10×), Bitso automatically liquidates open positions across your Margin Wallet to repay borrowed funds. You cannot pause or reverse a liquidation. Any surplus after debt, interest, and fees is returned to your Margin Wallet.
3. Borrowed funds are debt and accrue interest hourly
When you open a leveraged position, Bitso lends you the difference between your collateral and the position size. That borrowed amount is debt and appears in your Margin Wallet as a negative balance (for example, "-5,000 USDT"). Interest accrues hourly on the outstanding debt and keeps accruing until the position is closed or the debt is repaid. When you close a position, auto-repay pays interest first, then principal.
4. Risk is contained to the Margin Wallet
Your Spot Wallet is segregated from your Margin Wallet. A liquidation in your Margin Wallet does not touch funds in your Spot Wallet. Only assets you have transferred into the Margin Wallet are at risk.
5. Trading Power caps your order size
You cannot place an order larger than your current Trading Power, which is calculated from your suitability category, the collateral weights of the assets in your Margin Wallet, and your existing open exposure. Trading Power is not the same as leverage. Read "What is Trading Power and how does it relate to leverage?".
Before-you-trade checklist
• I understand that losses are amplified by leverage.
• I know my Margin Level liquidation threshold (1.10×) and that liquidation is automatic and account-wide.
• I know that borrowed funds accrue hourly interest until repaid.
• I have checked my Trading Power and the order size I am about to place.
• I have decided in advance the price level at which I will close or add collateral.
• I am only risking funds in my Margin Wallet that I can afford to lose.