Margins are the difference between your offer price and the Bitcoin market price. It determines how much you stand to earn or lose in a trade.
What are margins?
Margins can set your offer price above or below the market price. They allow users to add a type of sellers’ or buyers’ “fee” when making a trade.
How do margins relate to selling crypto?
When selling crypto, a positive margin (+) gives you profit since you ask a trader to buy your crypto at a higher price than the current market price. Selling crypto at a negative margin (-) will lower your profit since you are asking to sell your crypto at a rate lower than the market price.
How do margins relate to buying crypto?
When buying crypto, a positive margin (+) means that you’re buying crypto at a price higher than the market price, and a negative margin (-) means that you’re buying crypto at a lower price than the market. Buying crypto with a negative margin (-) typically means you save money.
How it works:
- You can start by creating an offer by clicking the Create an Offer button at the top of the page.
- After you decide to sell or buy crypto and select a payment method, go to the trade pricing section.
- You will see a section called Offer Margin when setting up your trade.
Offer Margins are done in percentages, not in specific currency amounts.
- You can make your Offer Margin a positive (+) or negative (-) percentage.
- There are two options when making your Offer Margin. The first is the basic version, where you only decide on your percent Offer Margin. The other option is the advanced version.
- In the advanced Offer Margin option, you can use the market price from different sources, like Gemini, Kraken, and Binance. You can also choose the price point as well.
- After you complete the above steps, that’s it! You’ve successfully finished making your Offer Margin. You can continue filling out the rest of your offer like you normally would.