In Woo X, the mechanism of margin is automatic borrowing. Which means that if you enable margin and buy/sell amount exceeds USDT available, the system will automatically borrow the quantity for you. You will be borrowing as you use margin, and repay the interest as you borrow from WOO X to minimize your borrowing cost.
For example, suppose you hold 10000 USDT and 100ETH. At this time, the price of ETH is $2500 and the price of BTC is $34000.
- If you want to buy 1 BTC, just place an order to buy directly, and the system will automatically borrow 24000 USDT for you. Your balance will become -24000 USDT.
- If you want to sell 200ETH, just place an order to sell 200ETH. At this time, the system has borrowed 100ETH for you, and the available quantity will become -100.