Step-by-step instructions on how to start leveraging trades on bitoftrade.
Leverage is one of the advanced trading features on the bitoftrade platform, we’ve made a guide to help you start placing market leverage orders to your trading habits.
First time leveraging on bitoftrade:
If it’s your first time leveraging on bitoftrade, you’ll need to approve the procedure in five simple steps:
Click “Link Wallet” and approve by signing two requests.
Select “Setup Wallet”. This will create a leverage account linked to your wallet.
Click “Approve USDC”. This is a one-time procedure that includes gas fees and approves our smart contracts to interact with your USDC balance. This process may take several minutes.
Next, please deposit USDC to your leverage account. Leverage trading operates in USDC, so make sure you have both USDC in your wallet and ETH for gas fees. This step may also take a few minutes.
Now you have a positive balance on your account you can start trading!
Leveraging on bitoftrade:
On bitoftrade we have 3 types of leverage orders, here's a simple step-by-step guide to leverage trading on bitoftrade.
Market orders:
A Market Order is an order to buy or sell a given asset and will execute immediately at the current market price determined by the orderbook at the time an order is processed by the matching engine.
To execute a Market Order:
- Select Market in the trade box.
- Select Buy or Sell.
- Enter an Amount to trade or choose the Leverage level to your desired position leverage.
Some market orders may not always execute at exactly the estimated price you see on the website. The price of the orderbook may change before your order is processed by the matching engine.
Limit orders:
A Limit Order is an order to buy or sell a given asset at a specified (or better) price. A limit order to buy will only execute at the limit price or lower, and a limit order to sell will only execute at the limit price or higher.
To place a Limit Order:
- Select Limit in the trade box.
- Select Buy or Sell.
- Enter an Amount - this is the total trade size.
- Enter a Limit Price - set the maximum or minimum price at which you are willing to buy or sell.
- Time range - This order will be placed on the order book and automatically expires at the specified date.
**Limit orders have a default time range of 28 days which can be changed.**
Stop Limit orders:
A Stop Limit Order will execute only when the index price crosses a specified Stop Price. Once the Index Price touches your stop price, a limit order will automatically be placed to limit buy/sell your order amount. Stop limit orders can be used to limit losses on your positions by automatically closing them when the price falls below (for longs) or rises above (for shorts) the stop price.
Once triggered, the resulting limit order may either be immediately filled or may rest on the orderbook at the limit price. The limit price operates exactly the same as for normal limit orders.
To place a Stop Limit Order:
- Select Stop Limit on the trading widget.
- Select Buy or Sell.
- Enter an Amount - this is the total trade size.
- Enter the desired Limit Price - this will be the limit price of the limit order that is placed once your stop order triggers.
- Enter the desired trigger Price - your order will trigger when the Index Price reaches this amount.
- Choose the time range in the trade box.
Stop order triggers are based upon the index price, not the mid-market price. Therefore, you may have multiple stop orders open for a given position.
Important note: leverage trading is a high-risk trading tool. Make sure you fully understand your strategy.
To deepen your leverage trading knowledge, read the article: The Art of Leveraged Trading: A Professional Approach
Depositing and withdrawing funds:
Deposits:
- You can deposit funds into your account by completing a Layer 1 Ethereum transaction.
- Once the deposit transaction has been mined, 10 Ethereum network confirmations (which usually take up to 3 minutes) are required for your funds to be made available.
Withdrawals:
- Withdrawals utilize a withdrawal liquidity provider to send funds immediately and do not require users to wait for a Layer 2 block to be mined.
- Users do not need to send any transactions to perform a fast withdrawal.
- Behind the scenes, the withdrawal liquidity provider will immediately send a transaction to Ethereum which, once mined, will send the user their funds.
- Users must pay a fee to the liquidity provider for fast withdrawals equal to the greater of the gas fee the provider must pay and 0.1% of the amount of the withdrawal.
- Fast withdrawals are also subject to a maximum size of $200,000.
For a complete walkthrough of how to buy and sell fiat-crypto (and vice versa), click here.