What Is the Base Settlement Currency?
Date of update: 26.08.2024
The base settlement currency in CScalp is the currency that a trader uses to buy or sell crypto assets. The purchase of cryptocurrency using the base settlement currency occurs in the Exchange wallet mode. There is also a Margin wallet, which allows the use of borrowed funds. Let’s take a closer look at both wallets.
Attention! This article is for informational purposes only and does not contain recommendations or calls to action.
The review has been prepared by the CScalp terminal team. You can get CScalp by leaving your e-mail in the form below.
The review has been prepared by the CScalp terminal team. You can get CScalp by leaving your e-mail in the form below.
Exchange Wallet
The Exchange wallet is a currency exchange. Here, traders exchange one currency for another.
Example: A trader is trading the BTCUSDT pair. In this case, the base settlement currency is USDT. When buying BTC, the trader spends USDT. When selling BTC, USDT is received.
The Exchange wallet is available on almost all cryptocurrency exchanges.
Margin Wallet
In this mode, traders can use borrowed funds (take credit from the exchange). When using the Margin wallet, positions are calculated by the exchange. This type of wallet is not available on all cryptocurrency exchanges.
Note: On the Bitfinex exchange, when using a margin wallet, a concept such as a “position on a pair” appears.
Example of a position on a pair: A trader buys ETH in the ETHUSDT pair for 0.01 lot. They open a position for this pair. The position size equals the transaction amount (considering the commission). The sale of the purchased ETH occurs in the same pair. To do this, it is necessary to make a sale transaction with a volume equal to the already open position. This will close the position.
Features of Working with the Exchange Wallet in CScalp
CScalp has the capability to visually display the position in the Exchange wallet. To open a position in the Exchange wallet, you must select the base settlement currency in the connection settings.
Only instruments with the selected base currency will be available for exchange. For example, with USDT as the base currency, only instruments like ETHUSDT, BTCUSDT, etc., will be available in the “Select Instrument” window.
Advantages of using the base settlement currency in the Exchange wallet:
Only instruments with the selected base currency will be available for exchange. For example, with USDT as the base currency, only instruments like ETHUSDT, BTCUSDT, etc., will be available in the “Select Instrument” window.
Advantages of using the base settlement currency in the Exchange wallet:
- Display of profit and loss on the pair based on the price and volume of the position
- The possibility of using automatic trading operations, which are impossible without an open position
Important Considerations When Using the Exchange Wallet
- When a user opens a position on ETHUSDT in the Exchange wallet with the selected base settlement currency, then switches to an Exchange wallet without positions (when the base settlement currency is not selected) and exchanges ETH, for example, for BTC, then switching back to the mode with positions (when the base settlement currency is selected) will display these positions incorrectly. To solve the problem, you need to reset the trading history for the wallet. To avoid this issue, it is necessary to close positions before changing the base settlement currency.
- In the Exchange mode, it is impossible to place short positions (you cannot sell ETH if this currency is not in the wallet balance). However, the trading terminal does not prohibit selling the currency available in the wallet balance.
How to Choose Exchange/Margin Wallet in CScalp
To choose the Exchange or Margin wallet, click the “Settings” button in the upper menu of CScalp. Then go to the settings of the desired connection.
Here, you can select both the type of wallet and the base settlement currency.
Html code will be here