Disclaimer: Margin Trading on Stocks, ETFs and ETCs is not available for UK users.
This article explains how to open, review, increase, reduce, close and manage a margin trading position in a stock, ETF or ETC.
- Open a position: choose an eligible stock, ETF or ETC, select the leverage trade option, enter the amount, choose leverage and thus amount of borrowed funds, review the summary and confirm borrowing funds, pledging the Stock, ETF or ETC and additional collateral as well as the instruction of a liquidation order.
- Increase or add to a position: where available, you can add to an existing position during trading hours. This is subject to asset availability, your available amount to borrow, account status and risk checks. Bitpanda is not required to offer additional borrowing for every position.
- Reduce a position: you sell stock, ETF or ETC (part of the pledged collateral) to repay your borrowed amount partially. This reduces your exposure and repays a proportional part of the borrowed EURCV and daily borrowing fees.
- Close a position: you repay the EURCV borrowed amount in full. The stock, ETF or ETC is sold to repay borrowed EURCV and daily borrowing fees. Remaining proceeds are credited to your fiat wallet in your selected fiat currency.
When you open or add to a leveraged position, you first choose the stock, ETF or ETC you want to trade, the amount you want to invest and the leverage level (thus the amount of borrowed funds). The amount screen then shows an estimate of your position before you continue.
the amount you use from your selected fiat wallet.
the multiplier applied to your investment.
the amount of EURCV borrowed to open the position (thus, the borrowed amount you use in addition to your own funds to buy the stock, ETF or ETC).
your own investment plus borrowed EURCV, after applicable fees.
the amount of shares or units in stock, ETF or ETC that you will receive when you place the order.
the estimated price at which your position would reach the liquidation threshold and thus trigger the liquidation order that you instruct when placing the order.
a colour-coded indication of how close your position is to higher-risk levels.
the amount you can still borrow based on your account balance, collateral and risk checks. Every time you borrow funds, this amount is reduced, as you pledge e-money and crypto assets to Bitpanda GmbH, reducing the available amount to borrow.
the fiat wallet or payment method used for your own investment amount.
If the trade cannot be opened, the app will show an error before you can continue. This can happen if you try to borrow more than your available amount, if the market is closed, if the asset is unavailable, no price can be obtained from the stock exchange, or if another risk or eligibility check fails.
Before confirming, the summary screen gives you a final overview of the selected asset, amount, leverage terms, price quote, fees, estimated liquidation price, cost transparency documents and risk information as well as the terms and conditions. Confirm only if you understand the position, borrowed EURCV, liquidation risk, fees and documents shown.
After you confirm, the app submits the trade for execution. If execution is successful, you will see a confirmation screen and the position will appear in your Portfolio and on the asset detail page. If the quote obtained from the stock exchange expires, the market closes, the asset becomes unavailable or execution fails, the app will show an error and the trade is not executed (thus, you did not open a leverage position).
Take Profit and Stop Loss orders as Limit-to-market orders can help you manage an open margin position by selling part or all of the stock, ETF or ETC when a selected price condition is met.
A (Limit-to-market order in the form of a) take profit order aims to sell part or all of your Stock/ETF/ETC when the bid price received from the stock exchange (Quotrix) reaches or exceeds the target price you selected. You set a price that functions as a trigger of an order and that price is above the current market price. Once this trigger condition is met, an RFQ is requested from Quotrix which is accepted, resulting in an immediate sale. Your order will execute at the next available price.
The same applies to a (Limit-to-market order in the form of a) stop loss order, just that the price that you set is below the current price. The execution mechanism is the same as for a take profit order.
You can create or cancel Take Profit and Stop Loss orders as Limit-to-market orders from the position detail screen. The app will show the available options for that position.
You can create Take Profit or Stop Loss orders outside trading hours, but such orders can trigger only when bid price data available for the asset.
A Take Profit or Stop Loss does not guarantee a specific execution price.
Orders may be cancelled automatically if the position size changes or you sell your stock, ETF or ETC using a simple sell order, or the liquidation order is triggered and executed.
You may be prevented from creating an order if the target price is below the liquidation threshold or if the feature is disabled for that asset.
You can find your open leveraged positions in your Portfolio under the Leverage area.
You can also see a position widget on the asset detail page for assets where you have an open margin position.
In addition, in case you have a position at risk, it will appear in the “positions at risk” widget on Home.
The position detail screen shows information such as position value, performance, leverage, borrowed funds, daily fees, estimated liquidation price, risk level and available actions.
Margin Trading transactions are shown in your transaction history. Transaction details include trade confirmation reports and cost information.