Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Disclaimer: Margin Trading on Stocks, ETFs and ETCs is not available for UK users.
What is Margin Trading on stocks, ETFs and ETCs?
Margin Trading on stocks, ETFs and ETCs lets you open a leveraged long position in selected instruments from our securities universe. You invest part of the position value with your own funds, and Bitpanda lends you the remaining amount in EURCV.
Financing & restrictionsThe borrowed EURCV is used to finance part of the purchase price of the selected stock, ETF or ETC. It cannot be withdrawn or used for other Bitpanda products.
Leverage Buy structureThis is a Leverage Buy product. It is designed to increase your exposure to the price movement of the selected stock, ETF or ETC.
Execution-only & collateralYou acquire a stock, ETF or ETC on an execution-only basis. The stock, ETF or ETC and certain additional assets are pledged to secure repayment of the borrowed EURCV and daily borrowing fees.
Asset classificationThis is not a CFD or derivative product.
Risk awarenessBecause borrowed funds are used, both gains and losses are amplified compared with a standard non-leveraged investment.
Note: Margin Trading on Stocks, ETFs, and ETCs is currently not available for UK users or business accounts.
Do I own the stocks, ETFs or ETCs bought through a margin position?
Yes, the stock, ETF or ETC is held in custody on your Security Custody Account. However, while borrowed EURCV and daily borrowing fees remain outstanding, the position is pledged as collateral to Bitpanda GmbH. This means you cannot freely withdraw, transfer, or otherwise dispose of the collateral outside the available margin trading flows. Once you have repaid all of the borrowed funds, the pledge is deleted.
Important Note
The pledge does not transfer ownership of the collateral to Bitpanda,
but it gives Bitpanda security for the amount you owe.
What leverage levels are available?
Available leverage levels depend on the asset. The app shows the leverage levels available for each eligible stock, ETF or ETC before you trade. Depending on the asset, available levels may include 1.2x, 1.5x, 2x, 3x, 5x, 10x, 15x or 20x.
Leverage is the multiplier applied to your own investment.
ExampleSelect leverage factor to preview
2x Leverage Setup Breakdown
Own Investment
€100
Borrowed (EURCV)
€100
Total Market Exposure
€200
With 2x leverage, your €100 own investment gives
you a total of €200 market exposure. The remaining
€100 is automatically borrowed in EURCV stablecoins at a strict
fixed EUR-to-EURCV ratio of 1:1.
10x Leverage Setup Breakdown
Own Investment
€100
Borrowed Capital
€900
Total Market Exposure
€1,000
With aggressive 10x leverage, your €100 own
investment scales out to a massive
€1,000 market exposure. The remaining balance
of €900 is seamlessly provided as borrowed configuration backing.
Position sensitivityHigher leverage means a smaller price movement has a larger effect on your position.
Liquidation proximityHigher leverage also brings the estimated liquidation price closer to the current market price.
Asset limitationsNot every asset supports the same maximum leverage.
Discretionary updatesAvailable leverage levels and liquidation thresholds may change for future trades, at Bitpanda’s discretion.
How is Margin Trading different from a normal spot trade?
With Margin Trading on Stocks/ETFs/ETCs, the purchase of the instrument is a spot transaction. The difference is how the purchase is funded and managed.
How is Margin Trading different from normal Spot Trading?Select a mode to compare mechanics
Normal Spot Trade Mechanics
Capital Allocation
100% Your Own Funds
Collateral Constraints
None — Unpledged Ownership
In a normal spot trade, you use only your own funds
to execute transactions. You fully supply the purchasing liquidity,
meaning there are no borrowing requirements, zero associated
fees, and full unencumbered ownership of the asset from day one.
Margin Trading Mechanics
Funding Structure
Own Funds + Borrowed EURCV
Provided securely by Bitpanda GmbH
Collateral Requirements
Pledged Stock / ETF / ETC
Secures borrowed amount + daily fees
With Margin Trading,
you use your own funds plus borrowed EURCV provided
by Bitpanda GmbH. This borrowed EURCV is strictly used to finance
part of the purchase price of the selected Stock/ETF/ETC—it
cannot be withdrawn or utilized for other platform
products.
Key Account Separation:
Your borrowed EURCV is recorded completely separately from your
regular EURCV wallet. While your margin position remains open,
the specific asset purchased is locked and pledged as security
to cover the principal debt and any accruing daily fees.
This means that, compared with a normal spot holding:
Leveraged exposureYour exposure to the Stock/ETF/ETC is leveraged.
Amplified outcomesGains and losses are amplified.
Borrowing costsDaily borrowing fees apply while borrowed EURCV remains outstanding.
Risk thresholdsYour position has a margin level and liquidation threshold.
Asset restrictionsYou may not be able to freely withdraw, transfer or sell the pledged asset outside the margin trading flow.
Residual liabilityYou may still owe money if the position is closed and the proceeds are not enough to cover the borrowed EURCV, accrued daily fees and applicable fees.
So, while the underlying Stock/ETF/ETC purchase is a spot transaction, a margin position is different from a standard spot investment because it includes borrowing, collateral, daily fees and liquidation risk.
Who can use Margin Trading on stocks, ETFs and ETCs?
Margin Trading on stocks, ETFs and ETCs is available to all retail users in the EEA and CH, provided that they have the required knowledge and experience. Eligibility to trade specific assets can depend on your country of residence, regulatory requirements, product availability, personal details, collateral requirements, internal risk checks and other reasons.
To start using Margin Trading, you must:
1
Account onboardingComplete the required onboarding steps.
2
Appropriateness assessmentComplete the Margin Trading appropriateness test before opening your first position.
3
Terms & documentationAccept the relevant terms, and read risk information and documentation.
4
Collateral requirementsHave sufficient available funds and sufficient collateral (as determined by Bitpanda).
Note: Business users are not eligible for this product currently. If you are not eligible, the app may not show the feature or may prevent you from opening a position.
What is the appropriateness test and why is it required?
The appropriateness test checks whether you have sufficient knowledge and experience to understand the risks of Margin Trading in financial instruments. It is required before you open your first leveraged position.
Test coverageThe test covers stocks, ETFs, ETCs, leverage, collateral, liquidation, market risk and possible debt.
Mandatory requirementYou cannot open your first margin position until you complete the test.
Risk warningIf the result indicates that Margin Trading may not be appropriate for you, you will receive a risk warning that your knowledge and experience is insufficient and that using margin trading is inappropriate.
Risk assumptionYou should continue only if you understand the warning and can bear the risks, including losses of your investment and can bear the financial risk of still having to repay borrowed funds.
How do I open my first leveraged position?
1
Navigate to stocksOpen the Bitpanda app and go to the Stocks section.
2
Filter assetsTap the Leverage filter, browse eligible assets, search for a specific asset or further filter by leverage level.
3
Select order typeOpen the asset detail page, tap More and select “Trade with leverage”. You can also access Margin Trading by tapping the Buy button and selecting the order type “Buy with Leverage”.
4
Complete introductionsComplete the introduction screens, required checks and terms if this is your first time using the product.
5
Configure investmentChoose the amount you want to invest and the leverage level.
6
Review trade detailsReview the trade summary, including borrowed EURCV, fees, estimated liquidation price, risk warnings, required collateral and documents.
7
Confirm positionConfirm the trade only if you understand the position and the risks.
After confirmation, the position appears in the Leverage area of your Portfolio and on the asset detail page so you can manage it.
How long can I keep a leveraged position open?
There is no fixed scheduled maturity or maximum holding period for a standard margin position. However, daily borrowing fees continue to accrue while borrowed EURCV remains outstanding. Bitpanda may also require repayment or restrict actions in the situations described in the applicable terms, for example if the position reaches the liquidation threshold, a relevant corporate action occurs, or trading in the asset is disrupted.
Is Margin Trading risky?
Yes. Margin Trading is high risk and is intended for customers who understand
leveraged products.
•
You can lose your entire initial investment in the position.
•
You can lose more than your initial investment and still owe
borrowed funds (EURCV) to Bitpanda.
•
You may lose pledged assets outside the specific position if
they are used to repay outstanding debt.
•
Daily borrowing fees accrue while borrowed EURCV remains outstanding,
including when the market is closed.
•
Large market moves, overnight gaps, weekends, holidays, trading
halts or low liquidity can increase the chance that your position
is closed below the estimated liquidation price.
Only trade if you understand these risks and can bear losses beyond the
amount you initially invest.