Introduction to Trading Modes
In unified trading, users can select between Non-Borrow Mode and Borrow Mode based on their trading preferences:
- Non-Borrow Mode: Ideal for traders who wish to use only available balances without incurring debts.
- Borrow Mode: Enables trading现货/derivatives without holding the underlying asset, leveraging borrowed funds.
Feature Comparison
| Feature | Non-Borrow Mode | Borrow Mode |
|---|---|---|
| Tradable Products | Spot (no overselling), Perpetual/Delivery/Option (no borrowed-position opening) | Spot/Margin (overselling allowed), Perpetual/Delivery/Option (borrowed-position opening) |
| Auto-Borrow Triggers | Contract losses causing coin liabilities | 1. Overselling 2. Insufficient balance for contract opening 3. Contract losses causing liabilities |
| Auto-Repayment | Liabilities exceeding interest-free quota | Liabilities exceeding borrow limit |
| Interest Rules | No interest charged | Interest charged only on amounts exceeding interest-free quota |
Non-Borrow Mode: Detailed Overview
When active, this mode restricts orders to available balances. Key implications:
- Contract Losses: May create liabilities; interest applies only if exceeding the platform’s interest-free quota.
- Auto-Repayment: Triggered when liabilities surpass quota limits. Learn more about auto-repayment rules.
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Borrow Mode: In-Depth Analysis
This mode allows advanced strategies with borrowed funds:
- Potential Liabilities: Calculated when equity cannot cover margin requirements. Negative equity = formal debt.
- Interest Charges: Applied to debts exceeding interest-free limits. Excess debt triggers auto-repayment.
👉 Optimize your borrow mode setup
FAQs
Q1: Which mode is safer for beginners?
A1: Non-Borrow Mode minimizes debt risks, making it beginner-friendly.
Q2: How is interest calculated in Borrow Mode?
A2: Interest applies only to debts beyond the interest-free quota, computed on the full debt amount.
Q3: Can I switch modes mid-trade?
A3: No, mode changes apply to new orders only.
Key Takeaways
- Non-Borrow Mode: Simplicity + no debt.
- Borrow Mode: Flexibility + leveraged opportunities.
Always assess risk tolerance before choosing a mode. For advanced guidance, explore our trading resources.