What is a Unified Trading Account (UTA)?
The Unified Trading Account is an innovative trading system introduced by BlockFin, designed to allow users to trade both spot and derivative markets concurrently within a single account. This eliminates the need to transfer funds between multiple accounts, making the trading experience much more efficient. Additionally, users can offset profits and losses across various trading activities, enhancing capital utilization. The Unified Trading Account features three distinct modes: Simple, Spot and Futures, and Multi-Currency Margin, each catering to different trading requirements. Below is a comprehensive overview of these account modes:
Overview
The unified trading account by BlockFin is an innovative all-in-one solution designed to enhance your trading experience. It allows you to execute simultaneous trading strategies across both spot markets and derivatives, including perpetual and spot trading. This approach not only simplifies transactions, but also improves capital efficiency through various account modes: spot mode, single-currency margin, multi-currency margin without the hassle of moving funds between multiple accounts.
Advantages of a Unified Trading Account
- Streamlined Trading: Trade both spot and derivatives in multiple currencies from a single account without transferring funds between different accounts.
- Improved Capital Efficiency: Gains and losses from different trading markets can offset each other, optimizing your capital usage.
- Better Risk Management: Margin requirements are calculated based on overall positions and total liabilities within your account.
Differences from Traditional Account Modes
With a unified trading account, you can trade spots and derivatives simultaneously in various currencies without transferring funds between accounts. The PnL from different instruments can offset each other, enhancing fund utilization and risk management across multiple positions, which is particularly beneficial for advanced trading strategies.
Understanding Account Modes
BlockFin offers three distinct account modes tailored to different trading needs:
- Spot Trading Mode:
- This mode is designed specifically for users who prefer trading without leverage. Users can only trade spot assets and cannot engage in Futures Trading, Copy Trading (including traders or followers), or Trading Bots, and they cannot use the futures bonus or voucher.
- Spot and Futures Trading Mode [Default]:
- Users can engage in Futures Trading and Spot Trading, Copy Trading (including traders or followers), and Trading Bots. They can also use the futures bonus and voucher in this mode.
- Consolidated Margin: In single-currency margin mode, you can pool margin for instruments with the same settlement currency and offset profits and losses (PnL).
- Multi-currency Mode:
- Prerequisite: Trading account equity >= 10,000 USDT to switch to this mode.
- In addition to the trading asset range that is the same as the Spot and Futures Trading Mode, users can use Multi-currency as collateral for perpetual trading. Account collateral is calculated in USD, and the account may incur debts and face liquidation in spot trading.
- Shared Margin and Risks: Multi-currency margin mode enables you to share margin and risks for instruments with both the same and different settlement currencies, allowing for PnL offsetting.
Quick Tips
You cannot switch modes if there are unfilled orders or open positions; ensure all orders are canceled and positions closed before switching.
User Capabilities:
- Basic Mode:1) Spot Mode: Users can only trade spot markets and are not allowed to engage in futures trading or copy trading (including traders and followers). They can not use Futures Bonuses or vouchers, either.
2) Spot and Futures Mode: Users can engage in futures trading and copy trading (including traders and followers). They can also use Futures Bonuses and vouchers. - Advanced Mode:1) Multi-currency Mode: Users can engage in futures trading and copy trading (including traders and followers) and share margins and risks for instruments with both the same and different settlement currencies. In addition, they can also use Futures Bonuses and vouchers.
Prerequisites:
To switch to the advanced mode, the account equity must be at least 10,000 USDT.
In this mode, users can trade with multi-currency as a margin for perpetual contracts. The account margin is calculated in USD, and it may incur liabilities that could lead to spot liquidations.
How to Upgrade to a Unified Trading Account
To learn how to upgrade your Traditional Account to UTA on the BlockFin platform, follow these steps:
Step 1: Go to the Spot Trading, Futures Trading, or Overview page, and click on [Upgrade].
Step 2: Carefully read the introduction and details displayed in the pop-up window to better understand the Unified Trading Account. Then, click [Next].
Step 3: Confirm the trading rules and terms of service for the Unified Trading Account, and click [Confirm Upgrade].
Step 4: The account upgrade process will begin. This process takes approximately one minute. During this time, trading, deposits, withdrawals, transfers, and exchanges will be temporarily restricted.
After the upgrade is complete, you will receive a confirmation email. Before trading with the Unified Trading Account, please read the descriptions of assets and collateral, risk management rules, and trading modes carefully.
How to Configure My Account Mode
To set your preferred account mode, navigate to [Settings] on the futures trading page, then choose [Account Mode]. Please note that you cannot switch account modes if there are any unfilled orders or open positions. Ensure all orders are canceled and positions are closed before attempting to change modes. If the desired mode is not yet activated, you will need to complete any required steps, such as taking a quiz.
Users with sub-accounts can set the account mode for each sub-account individually after logging into their main account. All master and sub-accounts have access to the same types of account modes, allowing for tailored setups across different sub-accounts.