Margin trading is a technique that enables traders to borrow funds from a third party to finance trades that are larger than their initial deposit. Margin trading allows traders to access more capital for their activities, amplifying potential profits.

Margin trading is commonly used in a variety of markets, such as foreign exchange, equity, commodities, and cryptocurrency markets.

Most existing DEXs allow traders to use only their own assets without access to any leverage, and only a few support margin trading, usually through derivatives. There's still a lack of spot leverage opportunities for traders in the current digital asset markets and Primex is aiming at bridging this gap.

Primex proposes spot margin trading as a core feature. Traders can leverage liquidity from the protocol to gain exposure to a wide range of assets listed on DEXs. To open a leveraged spot position, a Trader locks in the initial margin, and the position is liquidated if it becomes too risky. In the event of liquidation, a portion of the initial margin is used to repay the borrowed capital in full. A position is considered too risky and subject to liquidation when the price of the bought assets falls below a certain threshold, specifically when it drops below the price of debt minus the initial margin.

Primex is not limited to any specific DEX, and the list of available exchanges will depend on the individual configuration of each Credit Bucket.

Each margin position includes three assets: the borrowed asset, the position asset, and the deposit asset, which can be the same as the borrowed or position asset, or different.

There are two ways to open a margin position - Market orders and Limit orders. For detailed steps kindly refer to How to open a Margin Market Position and How to create a Margin Limit Order.