Bitcoin Forum

What is the ROI on margin trading BTC or any other cryptocurrency for that matter?

Potential profit from margin trading is higher than spot trading but the level risk also will be higher. So avoid margin trading if still beginner trading,  because  we have small chance to make profit from it.

Be ver careful with margin lending, you can end up owning money

Margin trading has a high risk if you cannot understand the margin level. Need perseverance to succeed in margin trading, and also good money management.
If not, you will lose all your funds in an instant. I prefer to trade without margin, where you can be more relaxed in trading.

Very risky if you are new into business
You have to master the art of trading before you get in there or else you may end up loosing everything in a flash... Have in mind that where there is seeming high ROI, there is also always a high risk of loosing a lot.

This is a dangerous transaction and many people have committed suicide because of losses. This is a gambling game. This game is very popular but it will cause huge damage to your market and capital. When many bets are right, the whales will change the market in another direction so that they can make a profit.

That will be depend on the leverage that you use, with higher leverage will be promising higher profit but also with higher risk. If you want to jump in to margin trading, you have to learn it first in demo account.

ROI is way more higher than ordinary trading, depending on the risk level

usually they have also much high fees with funding

one thing I could say, if you're newbs in trading, play with it in a minimal amount or do paper trading

Margin trading is very risky, and trading with leverage 100x or even 50x has ROI -100% with 99,99% probability  :-X I have accounts on BitMEX and BitSeven, but I never use leverage higher than 25x, because even 10x is very dangerous  :)

Let's even forget about leverage for now. Making profit from any trading at all, will totally depend on your knowledge, discipline and strategy. A good strategy is not just going to keep you making good trades, but your ability to execute those strategies without any emotion is what makes you a better trader in the long run. Like you said, using demo account is a good start, but no point wasting your time on demo account if you do not even have a basic knowledge and some strategy you want to back test and gain confidence on. There is no fixed ROI when it comes to trading, but making profit is totally dependent on how good you are able to execute each trading strategy to make profit.

Suicide in the form of bailing out entirely from trading or real suicide ? lol. Anyway, it is a sure thing that if you approach margin trading without any knowledge at all, there is nothing that would change the fact that such a person will end up not just in huge loss, but could end up getting liquidated with nothing to trade anymore.

Personally, I do not always encourage new traders to go the marginal way, as that can result to a terrible one, but the most important thing is never to approach trade without any knowledge or strategy as that could actually be an equivalent to committing suicide like you said. ;D

Well your heart and mind must be strong enough to withhold the pressure of loss. In cases when you lose, don’t die and don’t get worried. Everything comes for your own good. Learn from it.

Margin trading is so risky for me and I have lost a lot from it because of improper trading and I waste a lot of time because I was always away when I try trading on Margin.

Margin trading is very risky for beginners, especially in crypto world where speculation is very high!

So just in case anyone actually missed the point of your question, which could have been asking what ROI actually meant.

ROI is return on investment. It's the percentage return you get on the amount invested. E.G. If you invest $100 and receive $120 back you have an ROI of 20% or 0.02.

As for specifying what the ROI is on any investment, that's near impossible unless you have some future telling powers.

How can you end up owning money? I understand you can loose everything in a moment which hapend to me few times unles you mean i can end up owning money if i borrow it from someone and then lose it all

Hurrying up on things will always lead up to a disaster but this thing isnt really uncommon at all for people to rush up into possible fast earning ROI thru margin
without even knowing on the corresponding risk lies ahead or along the way. Better to stick out or study out the basics and consider later on doing margin if you are
already confident with your trading style.

Margin trading is the process by which a trader borrows money from the broker in order to either buy or sell more stock than that trader would otherwise be able to afford. Margin trading thus operates in some ways like a short-term loan and allows trader to increase the leverage and buying power that they have

When you say margin trading it's short selling with leverage right? I think it has great potential for profit as they say. And it's more and more applicable nowadays. This is the time for short sell traders.

ROI - Return On Investment
For example with margin trading: you have $100 deposit. You using 10x leverage, open position on $100, and that mean you engage only $10 from your depo. In case price will go in right side (Up if you have Long, Down if Short), you will earn money. When cost of your whole position reach $110, it will mean that you earn $10, using only $10 of your depo, and in this case your ROI will be displayed like 100%.

ROI stands for returns on investment, it show you how many % you have gain from your capital. However, margin trading is a high risk activity and not for the weak hearts. Hence, please practise and be more familiar with crypto trading if you really want to try.

The ROI depend on the level leverage that we use, with higher leverage will be offer higher ROI but also the risk will be higher. Just like in Bitmex platform that offer leverage from 1x to 100x , so each level leverage will be give different ROI and different level risk. For beginner trader is better only use leverage 1-5x only and not more. Although we are a professional trader is not recommended to use more than 10x leverage because that too risky and will be not different with gambling.

Margin trading can be promising higher profit than spot trading but also with higher risk. The ROI will be based on trading balance, leverage and the volatility of the asset.  Metatrader platform is recommended to use in margin trading because will be easy to know how many profit and loss for each all open potition just by drag it. 

For margin trading is better to do that in futures trading platform like in Bitmex and Gate.io than in CFDs trading platform. Because in futures trading we trade with others trader and that platform provide leverage start from 1x leverage, but in CFDs the leverage too high up to 1 : 500. There are calculator in that platform to check the ROI by use  different leverage.

There is no given ROI for margin trading. It like all trading, dynamic markets. You create your own ROI and the potential is limitless.

What is margin Trading?

So, basically, margin trading is another name for trading with borrowed funds.

It enables traders to enhance their profits on successful trades as the amount invested can be substantially bigger than what they can realistically afford to trade with.

The word “margin” refers to the amount of trader’s personal funds in his margin account (collateral). Naturally, the bigger the collateral, the more funds trader can borrow from the exchange to leverage.

In cryptocurrency margin trading, investors can leverage 2:1 (2x), 3:1 (3x), 20:1 (20x), or even 100:1 (100x) ratio, depending on the platform and the amount of risk they are willing to take.

But, obviously, margin trading is a very risky business, and the same way as it can generate hefty profits, it can engender serious losses for traders embarking on such an adventure.

Cryptocurrency exchanges enabling margin trading differ in many aspects, such as liquidity, leverage, interest rate, fees, trading pairs, etc. This time we are going to compare the four of them:

Bitfinex
Kraken
BitMEX
Huobi
Read the complete article about crypto margin trading platforms (https://www.cryptocointrade.com/trading-blog/cryptocurrency-margin-trading-platforms/).

I know about margin but I will never participate in it. margin is really a game of chance, it's like gambling and I'm a person who doesn't like to gamble.
I want to invest with a high percentage of winnings based on my analytical talent, not vague clicks. margin has a very high risk and thousands of people committed suicide because of it.My advice is to stay away from it, it's not a good way to make money.

When i use calculator in futures trading platform, i think margin trading is very risky because our trading balance can be going to zero. In this situation of crypto market that all crypto in the bottom, look much better to trade in spot market. Margin trading is only option trade if the market in bearish trend.

it's simple - trade big volumes using small money.
if you lose - well, that's trading, it is not a easy job.
if you win - you win 10 or 20 or 400 times more

The transactions you do with the Margin transactions will certainly provide you with a serious and beautiful return, but you shouldn't forget that the risk of losing your money in such transactions will be quite high. On the other hand, there is also the risk of losing all of your main money in margin operations. Therefore, I suggest that people who do not have any experience do not do so.

Its just like trading what's not yours and just return to the owners afterwards. I personally don't like how marginal trading works because you are trying to double your risk on some aspect since you are borrowing and trying to continue your loss in the market marginal trading does not work with the kind of market we have right now.

It is very easy to liquidated and how much you want to leverage  depends on your risk tolerance.  Bitmex offers up to 100x leverage which creates a huge risk but offers a huge reward as well.  I've seen friends lose very large amounts in a short amount of time so be careful.

Many people are not in favor of margin trading like you but it will be good when you are good at your research and analysis. When markets behave as per your expectations then there could be plenty of chances for you to make big money from margin trading. At the same time, you may lose big in opposite markets and that too may happen in very short period of time itself.

Yes, margin trading will add extra risks to your trading hence not using it is always recommended but it will be good for professional kind of higher end traders.

Only about 20% of trader make money from margin trading because of leverage that make the risk higher. With leverage we can increase the percentace of profit but also the percentace of losses will increase too, for example we use 5x leverage, if the price going up 10% and we been make open potition long so we will make profit 50% , but if the price going down 10% we will loss 50%. So margin trading just similar betting.

high risk certainly has good potential benefits. so all trade is very dependent on the ability of each actor, if we are able and master all types of trade, all choices can have a good side. crypto trading is only intended for traders who are able to control the market. so those who don't understand, don't enter in any form of trade.

crypto was quite an adventurous and tricky thing. margin trading on crypto could be 1:200 times tricky  ;D

The ROI on margin trading BTC is margin times more than spot trading.

So
ROI is 3 times higher if you use 3*margin than if you did spot trading.
HOWEVER
The same goes in the opposite direction. Your loss will be 3 times as much also.

Read more about margin trading and what platforms you can use for crypto margin trading (https://www.cryptocointrade.com/trading-blog/where-to-trade-cryptocurrency-derivatives-parallel-review/).

I won't advice you to trade on margin unless you are an expert which it seems you are not because an expect will know what is margin trade. Margin trade in crypto is just like trading on forex where you can set stop limit and so on, with margin trade, you can get a lot of profit if you can predict the market well bit if not, you can as well loss all your coin at your very before, so the ball is in your court to make a choice on which kind of trading you want to embark on.

I agree with your statement about the calculation of Leverage
but I disagree if margin trading similar to betting, margin trading can be referred to as a loan fund (leverage)
You must be able to manage funds carefully in margin accounts, when your trade is nearing the threshold of Liquidation Price you must take action immediately, whether do cut loss or transfer funds to the margin account (if you do not want your account forced into liquidation)

Maybe you mean the similarity between margin trading and gambling is in terms of risk :v

many newbies start with 1:400 leverage and want to make a million for one night.
it's better to educate people, to show them how to trade with margin.
but high leverage is a tricky thing, it's really a rare thing to find a reliable broker with high leverage.
EU regulation now allows really low leverages while unregulated brokers can offer even 1:2000 leverage. but unregulated brokers are so...unregulated.

Margin trading is a very profitable and fast profit trading method You have a much higher chance of earning than normal trading But I don't recommend this trading method because it's risky and dangerous. In fact, it is a system based on luck rather than trade. I remember that in the past there was a Poloniex that providing margin trading, but now there is no margin trading on Poloniex. I'm sorry if I know wrong about Poloniex. I enter the Poloniex 2 months ago lastly.

ROI ( return on investment) is high, But so is the LOI (loss on investment). Even if you use as little as a 3X leverage (which is the highest any professional trader should be using for bitcoin), The ROI is still super-high (except of course, when volatility is bad). But, you have to be careful and set SL/TP everytime, no trade exceptions!

You can get your ROI in full as fast as days. If you are expert in margin trading. Depending on the leverage used for it. But it is really risky. The higher the keveragr you were about to use, the higher chances you may lose or win big amount of money. Anyhow, it is not advisable to use higher leverage for a newbie who wish to do margin trading.

Yes that is right, instead of margin trading we should give preference to do trading without our actual amount, which no doubt reduce the risk of losing all our money in no time. In fact there is a always a chance of making big money even by investing a small amount of your money, but on other side there is a  risk of huge amount of money.

You can get your ROI in full as fast as days. If you are expert in margin trading. Depending on the leverage used for it. But it is really risky. The higher the keveragr you were about to use, the higher chances you may lose or win big amount of money. Anyhow, it is not advisable to use higher leverage for a newbie who wish to do margin trading.

Margin trading in crypto asset look more risky because price of Crypto unpredictable, just like yesterday when the price uptrend and then dumped hard just afew minute. I think in this situation alot of trader loss money because used high leverage. Its easy to calculate profit/loss in margin trading, just drag it if trade on MT4 and use calculator that available in futures trading platform

Yeah, It contains a lot of risk than just merely trading naturally since you need to trade beyond you need to expect. Another thing is the market situation, no one knows what will be the market's phase after an hour or a day, especially now its bearish market and probability of continuous decline is huge. This is why i don't like the margin trading, I prefer quitting than that.

Margin trading is far from gambling, I don’t think using margin when you want to buy a commodity and no cash in stock to do so is gambling. Margin is being abused by people that make margin trading look like its gambling, they are the greedy ones trading without minimizing the risk involved and this makes margin trading a little more of a gamble because of the often increase in risk.

I will only agree that trading is gambling for those that does not know what they are doing, but generally speaking, you need leverage to enhance your gains and obviously it has its own risk levels. If you understand the risks and trade accordingly then margin trading must be a better way to make more profits for given capital amount.

BTC margin trading can be exceedingly gainful and can be highly risky depending on your trading methods and also your competency. I understand that leveraging high gives a better ROI on btc but its better you use a low leverage depending on the amount available for trading and even though your broker offers you a significant leverage, it doesn’t mean you have to take it.

Take for example, you have a $10,000 dollar trading account, it will less risky to trade at 2x leverage than 3x. So, your ROI on BTC depends on you and the leverage placed.

What do you mean by trading without our actual funds?
You mean using bonuses of brokers?
I hope you realize it is a tricky thing

Maybe "actual amount" means "the real funds you have"
for example, You have $10(actual) then you transfer funds to the margin account (i.e: 10 leverage)
so the funds to be available in margin trading are $ 100. actually, you only have $10 but you can trade equivalent to $ 100
if you make profits 20% from $100 you will get $20+$10 after repay (exclude interest)
CMIIW

There are some rules to follow when trading on margin.


- Be ready to lose your money, otherwise you will panic when you see a negative PNL on your account
- Use an exchange with a deep order book
- Trade coins with high liquidity
- Know how to use different order types, stop loss, trailing stop, hidden, OCO and OSO etc.
- Understand a bit market structure, understand that trading fees can make the difference between a gain and a loss
- Learn how to read a chart.

You can go practice a bit on https://sifr.com/ with test money.

Like everyone knows high risk gives high profit but also high loss, In Margin trading you have to see how much risk you can take and according to it you have to take the margin to trade, like if you take 10% of margin trading then the price for SL will be low but if you keep low profit, then you can earn good because 1 to 2% of movement of profit is very soon calculated it.

I use 10x margin trading and i just keep 2% profit and sell it even if the movement is high i cannot take more risk and in long term ROI i am having a good profit but same time i am also keeping 2% of stop loss so profit or loss only 2% because it can go down very sharply if you dont keep stop loss.

for a trader looking for the safest way and the easiest is always the choice that is always taken. if margin trading has a high risk, the trader will leave the method. but it turns out not so margin trading always has advantages, so for a beginner studying safe trading is more profitable than risky trading.

Trading platform also one kind of gambling so we must take risk in this platform. But high margin trading is the best way to make some profit in quickly. Most of the investors are continuously participate in trading because this make huge profit in short period. It is really easy to understand but we must always active in day trading. Beginners are easy improve the knowledge in small scale trading.

Because there's still a lots of people who treated trading as same thing with gambling, taking the high risk as expected to also have a high rewards,
but I agree with you, if people see disadvantages for sure they will not patronize this type of trading set up, but since they are also learning the potentials
they are trying to adopt and most of the time experienced allows you to benefits in the long run.


Skills, Patience and dedication, margin trading can be learned if you have the right resources, be positive and keen to take every learning as
your advantage towards your success.

Everyone can take advantage of the situation and there are also those who cannot. The important thing is our understanding of margin trading, we need a lot of factors that we need to know because to determine a margin trading we need a good formula to calculate the various costs needed when trading. Good financial management will make us able to take advantage of margin trading, this is a choice and for anyone who can use it well they will be able to make a profit.