Is leverage borrowing coins a current borrowing coins? What is the relationship between leverage borrowing coins and current borrowing coins?

In the cryptocurrency lending market, leveraged lending and current lending are two common models, but the two are not the same concept. This article will explain the differences in detail and provide detailed operation steps for leveraged lending on Ouyi Exchange.

Leveraged lending is not current lending

While both leveraged and current lending involve borrowing assets, their purpose, mechanism and flexibility differ significantly. Leveraged lending is designed to amplify trading positions, usually short-term behavior, and is suitable for short-term trading. Current loan is a flexible, non-fixed loan product. The funds are received in real time and can be repaid at any time. It is more suitable for long-term holding or flexible funding needs.

Leveraged lending usually refers to the use of borrowing to invest, such as borrowing cryptocurrency in cryptocurrency transactions for trading in order to make profits by taking advantage of price fluctuations. Borrowed assets are used to amplify potential gains (or losses), usually returned at the end of the transaction or within a specified time, and interest is required.

Current loan refers to borrowing funds or crypto assets at any time on a cryptocurrency lending platform. The borrower does not need to preset the repayment period, but only needs to pay interest on time, which is similar to the current loan of a bank, and has higher flexibility.

The relationship between leveraged lending and current lending

Both involve borrowing assets, but their purpose, operation method and duration are different. Both require the borrowing of assets through the platform or lending services and paying interest, which may involve fiat currency, cryptocurrency or other assets.

In some cases, traders may first obtain long-term funds through current borrowing before using leveraged trading. Current lending provides a flexible source of funding, while leveraged lending provides a leverage effect.

Ouyi Exchange Leveraged Lending Operation Guide (Manual Mode)

Leveraged Lending Operation is relatively complicated and requires patience. The following steps take the Ouyi Exchange as an example:

1. Login Ouyi (official registration, official download), enter the contract trading page, and select the trading currency (such as BTC).

Click the gear icon in the upper right corner to enter settings, select "Port-by-Port-by-Port trading settings", and select "One-click borrowing mode". Select the pair to be used for one-click borrowing.

3. In the trading window, select "Manual Mode" and select "Transfer", enter the amount (pled deposit) to be transferred from the fund account to the one-click borrowing account.

4. Determine the number of borrowed coins. For example, if 20,000 USDT is required, 10,000 USDT has been transferred, 10,000 USDT is borrowed.

5. The available funds are now USDT. Enter the price and quantity and select "Buy (Long) BTC".

6. Suppose BTC rises to USD 30,000, enter the price and quantity and select "Sell (short) BTC" to close the position.

7. Confirm the order.

8. One-click borrowing account balance is displayed as USDT.

9. Select "Borrow Coins", switch to "Return Coins", enter the amount to be repaid, and confirm.

10. Select "Transfer", select "Transfer", enter the amount to be transferred, and confirm.

Please note that the above steps are for reference only, and the specific operations may vary from platform to platform. Be sure to understand its risks and operate with caution before conducting any leveraged trading.

The above is the detailed content of Is leverage borrowing coins a current borrowing coins? What is the relationship between leverage borrowing coins and current borrowing coins?. For more information, please follow other related articles on the PHP Chinese website!