PredictHub Docs
  • Abstract
  • Introduction
    • What is Prediction Market?
    • Info Finance - Tokenizing Real-World Events
    • Why Decentralize Prediction Markets?
    • Market Potential
    • PredictHub: Explained Like I'm 5
    • What Sets PredictHub Apart from the Rest of the Market?
  • Mechanics
    • Central Limit Order Book
    • How does it work?
    • Fees Structure
  • Incentive System
    • Orbit Point
      • Passive Orbit
      • Become a Maker
    • Nova Point
      • For Taker
      • Leaderboard Bonus
    • Multiplier
    • Rewards Protection
  • Referral Program
  • Partnered Market
  • Tokenomic
    • Token Utility
  • Roadmap
  • In The Pipeline
    • URF Market
    • Rolling Position
      • Rolling Forward
      • Rolling Up or Down
      • Rolling Across Markets
    • OTC Market
    • Margin Trading
  • How to use PredictHub
    • Create Your Account
    • Fund Your Wallet
    • How to make your first trade?
    • Using Order Book
    • How to Withdraw?
  • FAQ
    • Where markets come from?
    • Who are you trading with?
    • Are there any country restrictions for users on PredictHub?
    • When do markets close and settle on PredictHub?
    • How Are Market Outcomes Determined on PredictHub?
    • Why Isn’t My Market Suggestion on PredictHub?
    • Why Do I Need Crypto on PredictHub?
  • Restricted Regions and User Eligibility
Powered by GitBook
On this page
  • Key Features
  • Margin Trading:
  • Flexible Leverage Options:
  • Key Benefits
  • Increased Market Exposure:
  • Enhanced Earning Potential:
  • Tailored Risk Management:
  • Example:
  1. In The Pipeline

Margin Trading

PredictHub introduces Margin Trading, a powerful feature that allows users to amplify their exposure to event outcomes by borrowing USDC against their shares. This mechanism gives participants the ability to increase both their risk and potential rewards by leveraging their existing positions, making it ideal for experienced traders seeking higher returns.

Key Features

Margin Trading:

  • Enables users to borrow USDC by using their shares as collateral, allowing them to expand their trading positions.

  • Supports leveraged trading on event outcome shares, increasing both potential profit and risk.

  • Provides the option for users to loop assets—borrowing USDC, buying more shares, and borrowing again—to maximize their market exposure and rewards.

Flexible Leverage Options:

  • Offers users a range of leverage ratios, allowing them to tailor their risk exposure according to their trading strategy and risk tolerance.

  • Users can choose between lower leverage for steady returns or higher leverage for more aggressive, high-risk trades.

Earn More with Looping:

  • Allows users to "loop" their trades by using borrowed USDC to purchase more shares, earning additional Orbit and Nova points with each loop.

Key Benefits

Increased Market Exposure:

  • By leveraging their existing positions, users can significantly increase their exposure to potential event outcomes, maximizing profit opportunities in the market.

  • Provides flexibility to enter larger positions without needing a full upfront capital investment.

Enhanced Earning Potential:

  • Margin trading allows users to earn more Orbit and Nova points through increased trading activity, unlocking higher rewards and bonuses for active participants.

  • The ability to loop trades multiple times can significantly boost a trader's point earnings, enhancing their ranking and reward potential on PredictHub.

Tailored Risk Management:

  • Users can adjust their leverage levels based on their risk tolerance, giving them full control over their trading strategy.

  • PredictHub’s margin trading includes built-in safeguards, such as automated liquidation levels, ensuring users manage their risk effectively without overextending their positions.

Example:

Imagine a user who is highly confident that Donald Trump will win the 2024 U.S. Presidential Election. They start by purchasing shares in the Trump market. With PredictHub’s margin feature, they use these shares as collateral to borrow USDC and then reinvest that borrowed capital into buying more Trump shares, effectively creating a leveraged position.

The user decides to leverage their position 3x, meaning their market exposure is tripled. As a result, the user earns more Orbit and Nova points due to their increased participation. Furthermore, they have the opportunity to loop their assets—continuing to borrow, buy shares, and earn additional points, making their position even more advantageous.

PreviousOTC MarketNextHow to use PredictHub

Last updated 7 months ago