What is Margin Trading?
Margin Trading lets you increase your exposure to cryptocurrency markets by using borrowed funds, also known as leverage. This means you can potentially earn higher returns, but it also comes with increased risk. Learn more in the Bitpanda Academy.
How Does It Work?
Margin Trading is available in the “Leverage” section of the platform. You can also access it from any eligible crypto asset page via the “More” menu.
Please note: for UK users, the maximum leverage is 3x.
1. Get Started
- Log in to your verified Bitpanda account.
2. Open a Margin Position
- Navigate to the Trade.
- Choose Leverage.
- Select a supported crypto asset.
- Enter the amount you wish to invest.
- Choose your leverage level: 1x, 2x, 3x, 5x, or 10x.
- Confirm your trade.
- Your asset is automatically swapped to EURCV at 0% fee before execution.
3. Manage Your Position
- All trades on the same asset are aggregated into one position.
- Key indicators like margin level, PnL, liquidation price, and entry price are updated in real time.
- You can add collateral to improve your margin level or partially close your position at any time.
- Note: Assets in your margin wallet cannot be withdrawn, swapped, or used elsewhere (e.g. staking or Fusion).
4. Closing a Trade
- Choose to fully or partially close your position.
- Bitpanda automatically repays the borrowed amount and funding fees.
- You receive any profit in your chosen payout: crypto, EURCV, or fiat.
- For partial closures, we apply FIFO, oldest trades are closed first.
5. Risk Management
- If your margin level drops below a predefined threshold (~105–110%), your position is automatically liquidated.
- You’ll receive email and app notifications in advance to help you take action.
- Bitpanda ensures you never lose more than your initial investment, even in extreme market conditions.
Fees
| Fee Type | Rate |
|---|---|
| Buy (Open Trade) | 0% |
| Funding Fee | 0.03% every 4 hours (0.18%/day) |
| Closing Fee | 0.3% of position size |
| Liquidation Fee | 1% (if liquidation occurs) |
Note: Funding fees are added to your debt (not deducted from your collateral), reducing the risk of unintended taxable events.
Availability
- 100+ crypto assets supported at launch
- Up to 10x leverage for popular coins like Bitcoin, Ethereum, and XRP
- Full functionality via desktop and mobile app
Frequently Asked Questions (FAQ)
Make sure your app is up to date. You need to have at least version 3.4 installed to access the Margin Trading tab.
Basic trading knowledge is highly recommended. Bitpanda provides tools and risk indicators to support you. Make sure you understand the risks involved before trading with leverage.
Bitpanda Margin Trading is spot-based. You trade the actual underlying asset, not derivatives or futures.
You can choose from 1x, 2x, 3x, 5x, and 10x leverage. Higher leverage may be restricted based on asset liquidity and requires passing an appropriateness test.
Not yet. Currently, only LONG positions (expecting the asset price to rise) are supported. Short selling will be added in a future update.
Yes, but you don’t need to buy them yourself. Bitpanda automatically converts fiat to EURCV at 0% fee when opening a margin trade.
With Bitpanda Margin Trading, you can now place limit orders with take profit (TP) and stop loss (SL) options, allowing you to plan your strategy, reduce risk exposure, and protect both your profits and invested capital.
These new features enable you to define your investment approach in advance. Once your parameters are set, positions will automatically close at your desired levels.
It’s the market price where your margin level drops below the liquidation threshold.
Formula:
Margin Level = Position Value / (Borrowed Amount + Accrued Fees)
Each asset has a unique liquidation threshold based on risk.
Yes. Bitpanda sends an email and push notification when your position approaches the liquidation threshold.
To reduce risk:
- Add more collateral to your position
- Partially close to lower your exposure