How Does Bitget Spot Margin Amplify Your Profits?

Spot margin is a foundational trading tool that can significantly increase your profits. But how exactly does it work to double your earnings?

Going long indicates your expectation that the target coin's value will increase. It operates similarly to traditional spot buying—buy low, sell high. However, spot margin differs by allowing you to borrow USDT for trading. For instance, if you are bullish on BTC but have limited USDT funds, resulting in lower potential earnings, you can use margin trading to borrow USDT and buy BTC.

Going short involves anticipating a decline in the target coin's value. The process includes selling first and buying back later—sell high, buy low. Through spot margin, you can borrow the cryptocurrency you anticipate will decrease in value and sell it short. For example, if you foresee a drop in BTC price, you can borrow a certain amount of BTC and sell it for USDT. When the prices fall, you can repurchase the same amount of BTC to settle the debt, retaining the remaining USDT as profit.

Going short represents the primary difference and advantage of margin trading over spot trading. Learning both long and short strategies enables you to navigate market fluctuations effectively.