ETH/BTC spot margin trading guide
What is ETH/BTC?
ETH/BTC represents the exchange rate between ETH and BTC, where BTC is the quote currency of ETH, which is the base currency.
The price of ETH/BTC increases when ETH outperforms BTC and falls when BTC outperforms ETH.
How do we make ETH/BTC spot margin trades on Bitget?
If you anticipate an increase in the exchange rate from ETH to BTC, you can transfer some margin to your cross margin account, borrow BTC to buy ETH, and then sell ETH at a higher price to pocket more BTC.
If you anticipate a decrease in the exchange rate from ETH to BTC, you can transfer some margin to your cross margin account, borrow ETH to sell into BTC at a higher price, and then buy more ETH at a lower price.
What are the advantages of ETH/BTC?
1. BTC and ETH are mainstream cryptocurrencies with significant advantages in terms of market capitalization, liquidity, and risk mitigation;
2. Investors who are long-term bullish on BTC and ETH can leverage this trading pair to hold more coins during the volatile market and put idle assets to use;
3. You can hold only BTC or ETH and still start making ETH/BTC spot margin trades. Your profits can be magnified with the help of borrowed assets.
Margin trading can provide you with more trading funds for spot trading, but it also comes with trading risks. In Bitget's spot margin product, forced liquidation or reduction will be triggered when the risk ratio is equal to or greater than 1. Therefore, we strongly recommend that you monitor your position's risk ratio and supplement principle or set stop-loss orders in a timely manner.