Bitcoin Forum

Recently, taking into account the downtrend of the crypto-currency market, margin trading has become popular. What is the first thing you should pay attention to in this area? What materials should be studied before starting?

Everyone who wants to enter the trading world must have knowledge about margin trading. margin trading is a very basic thing that must be understood, in essence we have to determine how to sell at a much higher price than when we bought it. But the situation is sometimes difficult to predict and with this knowledge we will achieve the best choice in trading.

What you describe is just regular trading activities. Margin trading is essentially calculated gambling on price action. You borrow money from the providers and then use that to enter a short or long position. If you choose the right direction you'll gain profit, but if not you'll lose your money as much as the amount of your margin. It is very risky but gives you better options to make profits especially in a bear market like this.

when the downtrend occurs, I always pay attention to news from the media to conclude and make it as an additional prediction

you can start learning from experience, for the best results always learn with crypto price movements on the market

People do not realize how big of a gamble it is to do margin trading when you are not very well versed in trading and have high experience doing regular trading.

It was the same people who got into bitcoin during late 2017 in order to get rich quickly and become wealthy in one day because some xcoin they bought did x100 and they have money to buy a house thanks to it. That didn't happen and the price went down and now they are trying to recover that loss and try to make even more in profits for the same dream by leveraging their trades and doing margin trading in order to get richer with shorter amount of time compared to waiting. However, they lack the knowledge and the fact that your money gets cashed out very quickly if you bet the wrong direction and leverage it too high like x100.

If you are going to engage yourself in margin trading, let me give you a tip from personal experience. It will help you enormously if you execute it properly and you won't lose all your money in a single swing as many other margin traders often do.

Learn how to set a stop loss for every trade you make!

No exception to this rule, never ever, no matter how much your gut feeling tells you you don't need one in this particular trade.

I can't overemphasize this point. Seriously, first thing you need to do is this.

And secondly, set your stop loss in such a way that if your trade goes the wrong way you never lose more than say 2% of your entire portfolio.  

Good luck!

Edit: I've just opened a thread discussing stop losses on Bitmex and how to minimize the risks. Make sure you check it out:

https://bitcointalk.org/index.php?topic=5079118.msg48403587

People are filled with greed. Crypto itself is crazy volatile by nature, and it still isn't enough for people. I used to occasionally invest in stocks before Bitcoin, and if I did well, I ended with 10-20% at the end of the year, which if you ask people what they think about these gains, they'll laugh right in your face. That's it? I make that in a week! That's the sort of reaction you'll be getting from them.

I frequently come across complaints from noobs claiming that they have been hacked or that the exchange stole their funds because their balance is gone. They are too stupid to realize what the features they use actually mean. They only see 0.1BTC x 50 = 5BTC = huge profit.

I wouldn't recommend anyone at this point to go short on any crypto currency. It's too late already. Just sit it out and do nothing.

Margin trading is a popular term in trading, forex or cryotocurrency, and there are numerous articles, videos and tutorials available for anyone willing to learn.
If you have issues with a specific area, you can bring it up for discussion, but margin trading in general does not warrant a thread.

Forex being so old in the trading business, I think it would be ideal to learn the forex trading basics. Information is readily available on the web especially YouTube.

 My first advise will be to study the market techniques before jumping to boat. Margin trading is very dangerous unlike other non-illiquid assets it can destroy your balance in blink of eye. There different types of margin trading strategies. After learning the basics try demo trading accounts before burning real accounts. If you ever interested with forex you can use real cent accounts for  improving your knowledge and skills.
 Short selling is super profitable specially trader uses leverage with margin account. Being on other side of trend can make you suffer from your decisions based on your small experience. Also dont forget to check the books of Jesse Livermore who wrote experiences of professional real  market maker. Psychology is key in margin trading and all the best in this journey!

In my opinion, the best way to learn is to practice and get used to the market rather than studying too much theoretical stuff that we can not apply at this time. It can be said that the market in this time is still in the downward trend with nothing to change I still choose Long btc.

Margin trading is quite simple and easy to understand. However, a trader must get used to x times higher volatility of their open positions. It also raises capital requirements for the trading compared to a non-margin trading.

79% of trader loss in margin trading because of use high of leverage. So before use real money we should be understanding how leverage work and how to use it. Avoid greedy in margin trading by use of high leverage because that will be similar gambling, and when we put money on gambling we will never make consistent profit.

yes, with the current market decline many traders do not have the capital to be able to trade, because many of them have lost capital when prices go down, but to enter into margin trading in my opinion it is a very big risk, if you cannot trade with well, don't try to enter margin trading, because the risk might be that your estimated capital will be zero,

Margin trading in crypto asset give opportunity  to make profit from the downtrend of the crypto.  And margin trading will be have higher risk because of leverage,  so to make possible to make profit we should be use low leverage between 1-5x,  and don't be greedy by use more than 10x leverage.

Margin trading is a very dangerous instrument if you don't understand and master it. If you are a beginner you should stick with spot trading until you get familiar with trading, then after you have studied how to trade on margin you can start with a demo account on bitmex for example. Then as you get comfortable with placing margin trades you can start risking your own funds. Again don't risk until you have a complete understanding of what you're doing. ;)

The first thing you need to know about trading in margin is that it is a very risky investment process and you can actually make profits from both upward and downward trends and you can also lose. If you have decided to go into margins trade you must learn the charting patterns and candlestick formation in other to be able to analyze the market and know the direction of the price and the impact the current market may make in future.

Once I try margin trading in the past, but I don't make a good profit and almost got lost. I realize that to try margin trading, we need to know where the market wants to go and it's not easy and simple as we think because the market can change in anytime. I think you need to learn about how to analyze to detect the trend which I still learning until now and I don't have any clue to get the right moment to enter the market. But if I have more times to learn, maybe I will study more.

I believe that one should learn to trade at lower levels before trying anything on the bigger level. Margin trading definitely gives the extra advantage of earning more than the potential of invested capital but at the same time, there is a risk of getting loss much more than the average situation. One can start with the lowest amount and build his trading strategies with slowly adopting margin trading in his trades.

Margin trading will simply becomes gambling if you don't have any ideas regarding to the system, you must learn every particular information that will lead you to understand how things are working inside this industry, charting and candle stick patterns are mostly being used to track or anticipate the next run, both ups and downs can be trace using the pattern you just need to study things deeper to assess correctly.

a lot of material you have to learn before you enter margin trading, because in my opinion before you enter margin trading, you must really be able to predict and have speculations about the altcoin price on the market, because I think doing margin trading is not easy for everyone, if You trade on the day you are still experiencing losses and it is difficult to make a profit, especially the risk if you want to play on the margin, you can lose all the capital you have for example you cannot do it.

I am newbie trader and I avoid margin trading because just similar gambling,   when crypto market downtrend I prefer to do trade on stocks market. Many expert said only 20% of trader can make money from margin trading,  so my chance very little to make profit there.

If you want to start margin trading, know first the difference between a swing trader and a margin trader. After that, learn what technical analysis should be used, what indicators and how to read candles and how the market reacts with fud. Margin trading is a serious field that should take cautiously and seriously. We can benefit a lot there, but we can also lose all our money if we are lack of learnings about it.

well, getting used is a simple thing, though sometimes it can bite you in the... you know where.

You have to first learn the candlesticks like what i am trying to do now. Also, indicators that will be use as a technical analysis is also needed as a margin trader. I used to watch youtube videos related to it, you also have to learn stop loss. Do not get too excited to enter and start margin trading. It was so complicated.

I really don't like margin trading. It is quite risky and when you enter the market, you will be blinded in the analysis. At that time, you only care about its price, you will forget about the analysis and just want to make money quickly.
I advise people not to make margin trading.

You have to learn trading ,only by practicing it. You can start trading with the minimum deposit of 10$. Advantage over minimum deposit is, if you had made any mistakes. It will not affect you the more. Analysis of market is essential one for the margin trading. When the market is seems to be downtrend, you have to hold your cryptocurrency. It will prevent you from the loss.

The margin trading places should be getting very competitive with how many there are now but instead they are making the odds a lot worse right now. I was looking at adding a long on 4200 but it stated I can cash out and win if it reaches 4200 however I had to make sure it doesn't go above 3950, like what the hell? Why such a low chance of winning with how close the gap is between current price and liquidation price.

I would understand if it was like 4000 price means 4200 win 3800 lose not 4000 price 4200 win 3950 lose, that is just unfair. We really need competition with these margin trading companies, being a monopoly in anything turns people into cannibals and they just keep on screwing over people with worse and worse conditions because they can and nobody could stop them.

First you need to take into account the fact that you have unlimited loss potential if you enter a short trade. While if you have are long you have limited risk and unlimited potential. Always use stop losses if you are a trader. If you are a investor I suggest you just buy the underlying bitcoin, not margin positions. Before anything learn the trading terminal UI and how leverage works if you are using it. Practice on a demo account if possible.

The margin trading will be too risky for people who don't know about trading because it's more complicated. They need to learn more about predicting where the price will go. It's not easy because the price can go wherever and it could make us feel confused and sad if we cannot make a profit.

But if you can learn about margin trading by watching the video, you will be able to trade, and you can predict where the price moves. Maybe it will difficult for the first week, but if you can see the sign from the analysis you make, you will know what you should do next.

Before margin trading, a trader should clearly understand how to calculate margin and know the difference between the required margin and available margin before entering a position. The reason for this is that it’s generally not recommended to open a position while utilizing maximum available leverage, otherwise, the trade is a risk of being stopped out prematurely if the market moves in the opposite direction. 

I margin trade with PrimeXBT which has an inbuilt exposure limit which is set by the risk management to help protect both you and the platform itself from loss.  But even so, you should always leave yourself with a buffer in case you wish to modify your position. 

As well, anyone who intends to trade with high leverage on margin needs to be fully aware of the increased risk and understand market trends. This isn’t to say don’t do it, rather, be prepared with a clear exit strategy in case things go wrong - setting a predetermined stop-loss and never invest more than you can afford to lose (as always). 

Margin trading allows you to borrow funds to leverage the bets and multiply the profit when you don’t have enough capital. Margin trading is often considered a double-edged sword because you can increase the profit on the rising price of the asset as well as on the falling price.
While it sounds simple, in order to define the market movement correctly, you should know how to perform technical analysis and understand market trends. It requires skills and experience to trade successfully.
When trading on margin you take extra risk for the chance of extra reward. A trader can use this trading tool when the odds are in his/her favor.
Usually, in order to reduce the risk, professional trading platforms offer such instruments like a stop loss and hedging margin. You can find these features on Cex Broker (https://cexbro.com/) and some other platforms. This recently launched broker provides enhanced tools and technical analysis that help you to trade more efficiently. If you are not sure whether you are experienced enough for margin trading, the platform offers a free demo account where you can master the skills.

very risky if the margin trading can be done in bearish market conditions like in 2018 yesterday. a true trader can understand when to decide the best in his trade, they naturally avoid margin trading and prefer steps to take advantage of the market situation that is always decreasing by buying more bitcoin for long-term investment assets