Hi all, I have deposited 10,000 FX into the FX/USDT pair but when I want to trade the message I receive is ‘unsufficient balance’. Question: do I need USDT as collateral to trade this pair? if yes, why can you deposit FX then, even into the ETH/USDT pair? thx for help
It works the same as all exchanges, including the spot market.
The first asset is the one you are going to speculate on - BTC/ETH/FX.
The second asset is the currency you ‘require’ to open any position - USDT.
You want to speculate on the price of FX.
You need USDT since it is FX/USDT.
As MarginX is an on-chain derivatives exchange, it needs gas fees to do any transaction.
- It accepts both FX and USDT as gas fees - $0.0003 in either.
- The trading fee on MarginX is 0.04%.
→ Benefits of using FX over USDT:
- FX - 20% trading fee discount. (Optional)
thx, for help. it was not immediately clear to me that only USDT as trading collateral is accepted. as you are referring to other exchanges, Deribit and Bitmex always require BTC or ETH as collateral for options & perpetuals for example.
The second asset is the currency you ‘require’ to open any position.
If the pair is FX/BTC, then you will require BTC.
If the pair is FX/ETH, then you will require ETH.
If the pair is FX/USDT, then you will require USDT.
Always look at the second asset for the currency needed to open a trade.
It’s the same even for BitMex.
As you can see, it says ETH/USDT, so you need USDT to start a position.
I think what you are referring to is that centralized exchanges offer cross-margin, where users can use other currencies in their account balance as collateral.
However, the base currency needed to open a position is always the second asset in any pair.
MarginX uses isolated margin, so you can only use USDT.
Welcome and thank you for your feedback.
By default is only USDT as collateral while $FX as gas (optional), as all trading activities are taken directly on-chain. Unlike most CEX/DEX, some conversions are done off-chain; in MarginX - every activity is on-chain from order placement, cancellation, matching to fund settlement - full transparency. You can view it on [Function X StarScan ]
We’ll include your suggestion to highlight USDT as collateral for the benefit of all users.
If you’re not holding any MXAlliance NFT, do drop me a pm with your f(x)core wallet address, and I’ll send one over for your trading rebates.