What Is Margin Trading?
How Do I Get Started?
Step 1: Enable Margin Trading
Log in to your Phemex account, go to margin trade page, and open the Margin Trading Account. Click Enable Margin Trading, read the service agreement, and confirm to activate the feature.
Step 2: Transfer collateral into your Margin Trading Account
Move supported assets from your Spot Wallet or other accounts into your Margin Trading Account. Only certain assets are eligible as collateral — check the full list on the Margin Data page.
Step 3: Borrow funds
You have two options:
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Manual Borrow — Click Borrow on the trading interface, enter the amount, and confirm.
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Auto Borrow — Select the Auto Borrow tab under order type. The system will automatically borrow the amount your order requires when you place a Margin Buy.
Step 4: Place your margin order
Submit a buy or sell order on the trading interface using your borrowed funds. Interest begins accruing immediately — one hour of interest is charged at the moment the order is filled.
Step 5: Repay your loan
You have two options:
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Manual Repay — Click Repay, enter the amount, and confirm.
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Auto Repay — Select the Auto Repay tab. The system will automatically repay part or all of your loan based on the order value.
Margin Level and Risk Control
Total Asset Value of Margin Account = Total Market Value of All Digital Assets in the Margin Account
Total Liabilities = Total Market Value of All Outstanding Margin Loans in the Margin Account
Total Interest = Sum of interest for borrowed assets
Margin Level thresholds
| Margin Trading | Apply for loans | Transfer out of margin account | Liquidation | |
| >2 low risk | Y | Y | Y | N |
| 1.5-2 low risk | Y | Y | N | N |
| 1.3-1.5 middle risk | Y | N | N | N |
| 1.1-1.3 high risk | Y | N | N | N |
| <=1.1 | N | N | N | Y |
What Happens During Margin Call and Liquidation?
Phemex uses cross-margin for margin trading, meaning all supported pairs share collateral from your Margin Trading Account. Your risk level is calculated based on all assets and liabilities in this account, and liquidation may affect all positions if triggered. Phemex also supports partial liquidation — if your Margin Level returns to a safe level during the process, liquidation stops and your remaining position is preserved.
Step 1: Margin call at Margin Level 1.3
When your Margin Level drops to 1.3, a margin call is triggered. You'll receive an email and push notification to transfer more collateral into your Margin Trading Account to avoid liquidation.
Step 2: Liquidation begins at Margin Level 1.1
When your Margin Level reaches 1.1, the liquidation engine takes over your positions and runs the following steps automatically:
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Active orders are canceled.
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Available balances are used to repay debt in the same coin.
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Some or all of your collateral is sold to repay debt and restore your Margin Level to a safe range.
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A liquidation fee of 2% of liquidated assets is charged. All liquidation fees go to the insurance pool.
FAQ
Q: What's the difference between margin trading and futures trading?
A: Margin trading uses borrowed funds to trade on the spot market — you own the actual asset. Futures trading uses leverage on derivatives contracts and doesn't involve borrowing or holding the underlying asset.
Q: What is Margin Level and why does it matter?
A: Margin Level = Total Asset Value ÷ (Total Liabilities + Total Interest). It measures the safety of your account. A margin call triggers at 1.3, and liquidation begins at 1.1.
Q: Is margin trading on Phemex cross-margin or isolated?
A: Phemex uses cross-margin for margin trading. All assets in your Margin Trading Account share collateral across supported pairs, which means liquidation can affect all positions in the account.
Q: Does Phemex support partial liquidation?
A: Yes. If your Margin Level returns to a safe level during liquidation, the process stops automatically and your remaining position is preserved.
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