How do I open, manage, and close a margin position?

Summary
This article provides step-by-step instructions on how to open, monitor, and close a long or short margin position on Bitvavo. It also explains how to use auto-close limits to manage your risk.

Before placing your first margin order, you will need to complete a brief knowledge check in the app. This ensures you fully understand how margin trading works and the risks involved before you start trading.

How to open a margin position

Bitvavo App

1. Tap the blue "Trade" button at the bottom of the screen.
2. Select the margin trading option (or choose "Long" / "Short").
3. Select the crypto asset you want to trade.
4. Enter the euro amount of the total position size you want to open.
5. Review how much of your own funds will be used as margin based on the position size and selected leverage.
6. Tap "Preview position" to review the details, including your estimated fees and liquidation price.
7. Tap "Open position" to finalize the trade.

Bitvavo Pro (Web)

1. Go to the advanced trading interface for an eligible asset.
2. Select the "Margin" (or "Short" / "Long") tab located next to the standard "Trade" tab.
3. Enter the euro amount of the total position size you want to open.
4. Review the position details and confirm your order.

How to manage your open positions

You can easily track all your active trades to see how they are performing in real-time.

1. Go to your "Portfolio" (or "Wallet") screen in the app.
2. Tap on the margin trading section (located below "Earn").
3. Tap on any open position to view its full details.

Here, you will be able to see your position's current value, estimated Profit & Loss (P&L), accrued borrowing fees, and your exact liquidation price.

How to use auto-close limits

The auto-close feature helps you manage risk by automatically closing your position at a price level you decide in advance. While setting up your position, you can add two types of limits:

• Take profit: Automatically closes your position when you reach your target return level. This helps you lock in your earnings.
• Stop loss: Automatically closes your position to prevent further losses if the market moves against you.

How to close a position manually

You can manually close an open position at any time to secure your returns or limit your losses.

1. In your portfolio, go to the margin trading section and select the open position you want to close.
2. Tap "Preview Close" at the bottom of the screen.
3. Review the final overview, which shows your margin, P&L, trading fees, and the final amount you will receive.
4. Tap "Close position" to finalize the transaction.

Frequently asked questions