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ETH/USDT Bot Uses USDT; Cross-Margin Collateral Is Variable

Hello! On a unified (cross-margin) trading account, I acknowledge that other cryptocurrencies held can be recognized by the exchange as collateral supporting the overall margin. Yet when my trading bot operates the ETH/USDT pair, it uses only USDT to open positions.

I understand that coins used as collateral can be debited and later returned (if there are no issues), and their value is revalued at the current market price with a reducing coefficient (haircut). Because of that revaluation and the haircut, I cannot predict precisely how much collateral will be available at any given moment.

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AI Analysis

The opinion highlights the distinction between account-level collateral mechanics and the specific funding source used by a trading bot. On cross-margin or unified margin accounts, exchanges can inclu...

AI Recommendation

Keep a dedicated USDT buffer for the ETH/USDT bot to ensure it can open and maintain positions independently of the exchange’s treatment of other collateral. This reduces the operational risk that sud...

Disclaimer

The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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