How to set up a Margin Bot?
The averaging bot algorithm is highly effective when dealing with large order volumes. By utilizing leverage, traders have the opportunity to increase their profits by a factor of 10 with a relatively small deposit of their own.
After registering on the UGMCRYPTO exchange,
we proceed to the exchange platform.
To choose the BNBUSDT pair
After selected the BNBUSDT pair,
Go to the "MARGIN" tab.
You will need to complete a questionnaire test beforehand, confirming that you acknowledge being informed about the risks of trading with leverage.
After answering all the questions and clicking "SUBMIT",
Proceed to the "MARGIN" tab.
1) Make a Deposit in USDT (the deposit amount serves as collateral). The trader utilizes a leverage of 1x, and it is this borrowed amount that the bot will use for trading.
(2) The trader can input the number of orders at their discretion. The more orders there are, the smaller the order size, but there will be more stop-loss orders. The optimal number of orders is between 5 and 10.
(3) The profit percentage is determined by the trader based on their discretion. The lower the profit percentage, the more frequently profitable orders are executed, and the bot locks in more profits.
(4) Click the "START" button.
The user has deposited 50 USDT as the collateral amount.
They have set the number of orders to 5.
They have set the profit percentage to 1%.
The information displayed in the information field is as follows:
(1) Mark Price: The price at which the bot entered the market, taking into account the liquidation price calculation.
(2) Current Leverage Amount: The amount of leverage being utilized, taking into account any applicable fees.
(3) Amount Paid for Leverage: The amount that the trader pays to use the leverage.
(4) Liquidation Price: If this price is reached, the bot will automatically stop, resulting in the complete loss of the collateral deposit.
How to move away from the liquidation price?
After the bot has been launched, if the user wants to reduce risks, they need to increase the collateral amount.
To achieve this, the user should deposit additional funds into the margin account. By increasing the collateral deposit, the liquidation price can be moved further away, providing a greater margin of safety against potential liquidation.
To set a "Stop Loss" price:
After entering the desired price in USDT, click on the "Set Stop Loss" button.
The "Stop Loss" function is used to minimize losses on the collateral deposit in case of market volatility and rapid price changes. By setting a stop loss price, the bot will automatically sell the assets if the market price reaches or falls below the specified level, helping to protect the user's funds from further losses.
In this field, the user enters the price at which the bot will stop trading and exit the market.
IMPORTANT: The user must understand that the "Stop Loss" price should be set accurately. Otherwise, the bot will not stop trading, and if the price continues to move in the opposite direction, you may lose your entire collateral deposit. It is crucial to set the stop loss price based on the current market conditions and the user's risk tolerance to effectively manage potential losses.