Spot Margin is not available by default on Coinmerce. Because short selling carries real risks, we ask every user to demonstrate understanding before opening their first position.
Here's how to get access and place your first trade.
Step 1 — Pass the knowledge test
The knowledge test is a short multiple-choice quiz covering:
How short selling works mechanically
The role of collateral and the Margin Account
The fee structure (borrowing, exchange, liquidation)
What the Position Risk Ratio is and what triggers liquidation
The risks of holding positions over time
There's no time pressure — you can review the help articles, take the quiz, and retry if you don't pass. The goal isn't to gatekeep, it's to make sure you've genuinely thought through what you're doing.
Step 2 — Accept the Spot Margin Terms & Conditions
Once you pass the test, you'll be asked to read and accept:
The Spot Margin Terms & Conditions
The Risk Disclaimer
These documents formalise the things you've already learned, plus legal and regulatory specifics. Read them — they're shorter than typical T&Cs and you should know what you're agreeing to.
After acceptance, Spot Margin is unlocked on your account immediately.
Step 3 — Open your first position
Go to the Coins screen
Tap any supported asset
Tap Decrease (instead of the regular Buy/Sell)
Enter the euro amount of collateral you want to commit
Review the trade confirmation screen carefully:
Position size
Current borrowing fee rate
Exchange fee on close
Liquidation fee (if triggered)
Estimated Position Risk Ratio at open
Confirm
Your position is now live. Watch your Margin Account for live P&L and Risk Ratio updates.
Pre-trade checklist
Before you confirm, ask yourself:
✅ Do I have a clear reason this asset will drop?
✅ Do I have a target exit price — both for taking profit and for cutting losses?
✅ Can I afford to lose the full collateral?
✅ Am I able to monitor this position regularly?
✅ Have I checked for major events in the next few days that could spike the price?
✅ Have I read the borrowing fee rate, and am I comfortable with the cost over my expected hold time?
If you can't tick all six, consider a smaller position or skipping the trade.
After your first close
Your first position is the most educational one you'll ever open. Whether it was profitable or not, take five minutes after closing to review:
Did the price move as you expected?
How quickly did fees accumulate?
How did the Risk Ratio behave through the trade?
What would you do differently next time?
Keeping a short trade journal — even just a paragraph per position — is one of the highest-leverage habits a new short seller can build.
Restrictions and account requirements
A few things to know:
KYC must be complete at a level that supports margin products. Your account level is shown in your profile.
Some assets may be restricted based on market conditions — Coinmerce can pause new positions on specific assets at any time.
Collateral cap of €10,000 per asset — this is a per-asset limit, not a per-position one.
Spot Margin may not be available in all jurisdictions — check our supported regions if you're unsure.
Common first-time mistakes to avoid
Going too big on the first trade. Start small until you've felt how the Risk Ratio moves in real conditions.
Holding too long. Borrowing fees can quietly turn a winning trade into a losing one.
Ignoring catalysts. Even a strong bearish thesis can be overwhelmed by a single bullish news event.
Not setting a mental stop. Decide your maximum acceptable loss before opening, and stick to it.