Settlement is an important part of margin trading, enabling traders to close positions and manage borrowed funds efficiently. In margin trading, positions are opened with borrowed funds, creating a debt in the borrowed currency. Settlement is the process of repaying this debt to close the position, either fully or partially, finalizing the trade’s outcome.
What is Settlement?
Settlement means repaying the borrowed funds directly from the account’s balance, without closing a position by executing a trade. The repayment should be made in the same currency borrowed from CEX.IO Margin Trading for opening a position.
For example:
To settle the Short BTC/USD position on your Wallet isolated margin account, you should transfer the amount of BTC that was sold for opening the position. These actions will fulfill the obligation to return your debt (BTC amount sold for opening the position).
To settle the Long ETH/USDT position on your Wallet isolated margin account, you should transfer the amount of USDT that was used for opening the position. These actions will fulfill the obligation to return your debt (USDT amount spent for opening the position).
Only a settlement fee is charged for settlement, making it a cost-effective way to exit a position.
Settlement option is available on CEX.IO Margin Trading platform on Wallet isolated margin accounts.