Guides:>A Guide to the Crypto Exchange Crypto.com
Crypto.com Prime – Margin Trading on Crypto.com website
What is Spread Trading?
Exclusive to Crypto.com Prime users, spread trading allows you to borrow funds to buy or sell larger positions, which can increase your profits. For example, if you don’t have BTC in your spread trading wallet and want to take a short-term position, you can borrow BTC for sale and create a negative BTC balance if you have enough collateral to support the position. Conversely, if you want to buy BTC with USD but have an insufficient balance of USD, you can place the order by lending USD and creating a negative USD balance. Note: In the initial trade, it will only be possible to buy a spread on coins.
How to operate and fund the Spread Trading Wallet?
There are three ways to activate the trading wallet at a spread:
- From the Account tab, click the Setup button next to the Spread Trading Wallet
- From the Prime membership screen, click Trade Spread
- From any coin screen, turn on the switch on Spread Trading
Then, follow the on-screen instructions to transfer eligible assets to your spread trading wallet. Click the ‘Move In’ button on the Margin Trading Wallet screen to fund afterwards.
Note that only the assets available as collateral listed in the table below can move into your spread trading wallet. The maximum amount of eligible assets as collateral that can be transferred is calculated based on your remaining collateral limit or the funds available in your crypto/fiat wallet.
| Eligible assets as collateral | Haircut | Maximum collateral limit (USD equivalent) |
|---|---|---|
| BTC | 30% | 25,000,000 |
| ETH | 30% | 15,000,000 |
Haircut is the fraction that is deducted from the asset’s market value that will not be included in the free spread score of the trading wallet at the spread to deal with volatility. Users who are added to Foris DAX FZE ME will have a 30% Haircut. Other users will have a 20% haircut.
The maximum collateral limit is the threshold at which the excess asset value no longer contributes to the balance of the free deposit. The transferred assets are displayed at the bottom of the spread-on trading wallet screen. According to the Crusader Spread Policy, the total value of all your assets in the Spread Trading Wallet contributes to the balance of the free deposit that allows you to borrow under a spread order.
How to transfer funds from the trading wallet at a spread?
Follow the instructions below to transfer funds from the Spread Trading Wallet:
- Select the asset you want to move on the Spread Trading Wallet screen
- If you have a negative balance for other assets (e.g. borrower positions), the amount that can be transferred will be smaller than the amount in your trading wallet, which is necessary to maintain a health score above 2.
- Tap the ‘Move Out’ button
If you’re transferring USD funds, choose whether you want to transfer US dollars or USDC. Note: USD assets and USDC assets are considered as a single balance of USD Bundle. If you have a USD Bundle balance in your trading wallet, you can transfer either USD to your fiat wallet (if available for your specifications) or USDC to your crypto wallet. Insert the transfer amount out and confirm the transfer.
Conditions of the Spread Trading Wallet
- Portfolio Balance at Spread: The total market capitalization of all assets in your Portfolio Trading Portfolio.
- Free Deposit Balance: The balance left for free deposit for placing additional spread orders. If the market value of any asset exceeds the maximum margin limit, the excess value will not contribute to the balance of a free deposit.
- Deposit Balance in Use: The balance already in use to support the risk of cutting and accompanying positions on risky assets.
- Cut-off risk is applied to positive asset balances; it is a portion that is depreciated from the asset’s market value to cope with the volatility of the asset: Position risk refers to negative asset balances to deal with the risk associated with a loan. The amount of risk depends on the leverage of the product. If you take out a $1,000,000 loan and the product’s leverage is 5x, $200,000 will be added to the deposit balance used to support the position risk.
You must have sufficient balance in your spread trading portfolio to support the required deposit balance for your spread positions. If not, a read space will be enabled and some activities will be restricted.
How to execute a spread order?
From the Prime Companies screen, click on Trade Spread next to the Trade button.
How do I see my wallet’s transaction history at spread? From the spread-on trading wallet screen, tap the clock icon in the top right corner to see your trade history over the past 30 days. You’ll find: Order history and details, including orders placed following liquidation, transactions of the entire asset (i.e., deposits and withdrawals), associated trade fees, and interest accrued from a loan.