Bitcoin Forum

I have been in the cryptocurrency trading world for the past 10 months and couldn't make much profits when the market moved to bear phase. I have been reading about margin trading and have not been able to wrap my head around it? I think i can make some money in the bear phase! Am i correct?

Firstly you can earn money in any market,be it the bull or the bear, only "glory days" investors actually wait for the bull market to invest..
Real bitcoin investors take advantage of any market to maximize profits,as buying low and selling high would be some profitable business,woudnt it??

Down to your question,margin trading???
To make it as concise and easy to understand as possible...
Margin trading is simply a sort of loan,borrowed by an investor to increase investing power/stake/capital..

Let's say you lack capital and you wanna invest in some project or in the bitcoin,margin trading allows you to take a sort of loan from a broker to increase your initial capital
And with an increase in your investment capital,would come an increase in your profit
Repayment to the broker most times comes with a little interest though

Google knows everything...

https://www.investopedia.com/university/margin/

https://economictimes.indiatimes.com/definition/margin-trading

https://www.creditdonkey.com/what-margin-trading.html

I think it is difficult to conclude at this moment of what will be the margin trading because of this bearish market which still in effect in which it makes the price value to become more volatile that even the experts day traders are having difficulties about it. Maybe this is possible if the bullish run will start.

The issue with margin trading is that it comes with greed and many people basically over leverage themselves and end up getting stopped out.

This is the reason why with stocks you got max leverage at 3x because if they allowed 100x like they do on Bitmex then everybody would be crying to the regulators that they got stop hunted and account was cleared out.

So its a double edge sword. But basically if you got good trading skills you can use it to your own advantage and make more money by borrowing funds (paying some interest) and making more money then you would just longing on 1x.

Margin Trade is a tool that allows you to earn money regardless of the market movement. So it is possible to make money with a Bear Market using short positions.

In a simple way, you borrow an amount of assets from the market that is superior to what you have on your account. And invest according to the direction you believe the market will follow. At Bitmex you can have a margin of 100x. This means that the amount you will invest in a position, short or long, will be equivalent to a 100x the BTC that you have on the wallet.

So you could make a lot of money with a low investment. But it can also leave you with nothing if you bet wrong.

margin = borrowing. in this case, you use the collateral you own (BTC or USD) to secure additional borrowed BTC. you sell that borrowed BTC on the open market in hopes of buying back lower. the difference between your sell price and buyback price = profit.

for example, let's say you're trading on bitfinex and you have 1000 USD collateral. you can move that USD to your margin wallet, then open margin positions with a value of up to 3333.33 USD because the maximum leverage allowed is 3.3x. if you want to profit from declining prices, you'd open a short position.

here's bitfinex's intro to margin trading. it breaks everything down into simple terms: https://support.bitfinex.com/hc/en-us/articles/115004555165-Intro-to-Margin-Trading

First of all you dont have to use leverage, but you need to trade on sites that offer it, to take short positions. Second, risk (stop loss) only a predifined percentage of deposited amount in a single transaction, for example 2%.

Margin is trading is like for huge loans with very small collateral. As much you can make good money with it should trades go successful, bad trades can also ruin you totally and empty your account to zero. Some guy in a group I belong to lost over 1.8 BTC in a space of 3 days on BitMEX. That was how I got to know about it.

Margin trading is so risky and it does not fit with someone who is only a beginner in crypto space. You should atleast have an experience about trading and controlling your emotions.

if you're not using leverage, then you can just sell your BTC at spot instead of bothering with a margin interface. it's effectively the same thing. the only difference is when shorting, you need to buy back the coins to close the position.


there's a world of difference between trading 100x on bitmex and trading 3x on bitfinex. i never use more than 10x leverage---more than that is too risky given the volatility of crypto. and when i use 10x, it's only with a small portion of my coins.

When crypto price overbought and the price will change to bearish, we should be out from spot trading and we should be short the price in margin trading. Margin trading is mean we can borrow the money from the broker or lender to have more balance to trade, with higher margin or leverage the risk also will higher, so for beginner trader dont use leverage more than 10 times. And chooce trading platform that offer leverage between 1x to 10x so we can chooce it as like as we want.

Margin trading and short selling are two completely different things, though I think you can use margin to leverage your short sales. 

The bottom line (and the simplest answer to OP's question) is that margin IS a loan, and it's a loan given to you by the exchange you're trading on or, in the case of stocks, the broker you're using.  If the value of what you purchased (coin, stock, whatever) with the borrowed money and whatever you put in out of your own pocket falls beneath the amount required to pay off the loan, the exchange or broker is going to issue a margin call, which is a request for more collateral.  Either that, or they'll just sell whatever you bought and you lose everything.

Using margin is risky, and I've said it a thousand times that new traders should just trade with the funds they have before even contemplating borrowing money to trade.  And remember, there's interest you have to pay on the loan as well.  Be very careful if you're thinking about margin trading.  Lots of investors have gotten their heads handed to them when the market took an unexpected downturn, and there's always the possibility of that happening in crypto.

Be careful with margin trading in this range for crypto... this is where almost everyone gets rekt... down between 6000-6500...any bad candle or bart candle can hit your stop or liquidate you before you can even blink... if youre gonna go long or short on margin, make sure to enter on the extremities and be patient.. also don't put your stop at obvious places, because whales will find you.

The thing here is that people only talk about them making money using margin trade but hen they lose money no one here about that, margin trade is very risky please for a start don't go more than 5x until you make a bet that go against you and learn from experience, please don't be greedy and I think people have started to mixed short position and margin trading together both are different

Margin trading allow you to trade a bigger amount by taking up a loan. However, your position will be liquidated if your trade fall below the leverage %. Personally, I think margin trading is risky and you should know what you are doing before start to margin trade.

I'm sure you've heard of winner wins all before, the reverse could happen to you in margin trading, a case of loser losses it all.. It's more like taking a loan to trade and which has to be serviced too. It's often advised that as a beginner, you should stay away from margin trading and leave for it for the professional.

  It's simply the practice of either borrowing share or money from the broker. There are a couple ways that one can margin trade. Margin trading is buying stocks without having the entire money to do it. The exchange has an institutionalized method of buying stock without having the capital through the futures market. However, margin trading is an act of leveraging your Cryptocurrency existing portfolio on the exchange that supports margin lending to borrow or buy more Cryptocurrencies which you will use to participate in arbitrage trading for bigger profit.

Yes margin trading is give opportunity to make profit by short the price,  and margin trading will allow to make profit when bearish market.  There are different margin trading, like CFDs and futures contract but all this the same thing,  the futures trading use contract or duration for open potition but in CFDs is not.  The level of risk is the same and according to how many leverage that we use.  Margin trading is more risky so we should be use stop loss for every trade.

margin trading is a dangerous area and I advise you not to engage in that area. In my country, there were a lot of suicides because of Margin. Not that they have no knowledge, but margin trading is really a gamble. The whales involved in that market are very much and the ever-changing market is the result of many people making margin trading.

The biggest improvement over regular trading is in margin trading you can trade short as well. This means normally you either buy bitcoin or go back to fiat, with margin trading you can use your money to say "bitcoin will go down" and make profit from that.

Everyone talks about how margin trading allows you to leverage your money and just make ton of more than what you have which I agree doesn't exist anywhere else on crypto or normal life outside of margin trading but that is definitely not the biggest improvement.

You can definitely lose your money a lot more quickly if you use that option. However being able to bet on the fact that bitcoin will go down is still an amazing feature even if you just trade on x1 leverage (meaning no leverage at all) that options can still make you money during bear markets.

 Please, keep in mind that margin trading is not suited for beginners. You should have at least several months of trading experience before attempting to margin trade.

I have been trading on this platform called MavSecure and i found it pretty cool and i also received 50$ as signup bonus. I know it's pretty hard but i have not made any profit or not incurred any loss. I feel with proper analysis i could make some money.

The first thing to understand about the margin calls is related to the nature of the assets you are trading. Many brokers deals in fact with contracts based on underlying asset, as it's the case with derivatives, so you may find out that in fact you are not trading real coins but contracts.

Due to its very nature, which is extremely volatile, cryptos are extremely vulnerable to any leveraged trading strategy. A margin trading account contains often clauses that could ruin you in a matter of days or hours.

Another aspect which is disregarded by most traders, including forex and other types of centralized trading, is that the broker has the possibility to see clients strategies and to manipulate the market in such a manner that finally will wipe out all their money. Don't forget that a broker's job is to make money, which is take your money.

If you want to trade cryptos, you need to make sure you:
- own the asset (having it in your own wallet)
- trade it then on a low fee trading platform
- learn what are the smallest withdraw limits of that exchange
- do the trades
- eventually put your coins into your safe wallet

So my advice is: don't go on margin trading!  Even if you are a good trader, the fees and interests are going to eat you alive!

Exactly I am in this favor. No newbie should start margin trading. and like you have said, first make trading experience. Join some demo trading platforms. Try it practically and then get in here.

What's more, is you can short sell.  Short selling, or shorting, is a way to profit from the downward trending markets.  This is a process where you borrow from the exchange/trading platform in order to sell high and buy back in at a lower price, thereby repaying the 'debt' and profiting from the difference in the sell and re-buy price.

Shorting, like margin trading with high X leveraging, is not a widely-available option at most existing crypto exchanges, but is much more prevalent in traditional financial markets. It allows for profit to be taken during lowering price actions, and can provide a means of creating more rounded trading strategies. A handful of advanced trading platforms like PrimeXBT (https://primeXBT.com (https://primeXBT.com)) are now allowing for these renowned techniques used in forex/stock markets, with up to 100X leverage which can be applied to all positions (including short) to further increase profit potential in bearish markets.  

It is typically advised however to ensure effective risk management precautions are simultaneously utilized (like stop-loss orders, etc.) to limit your loss potential.  Additionally, it is also advised to start off with lower X leverage (up to 10X max) as stop loss orders can be executed more easily with high X leverage, meaning you'll lose your investment will less price movement, leaving less room for error.  There are many ways to profit in a bear market, but shorting is an ideal method - provided you conduct thorough technical analysis in order to trade with the trend.  

Margin trading can be profitable if we understanding price action of crypto and have risk management, because with leverage the risk and the potential profit will be higher than spot trading. Margin trading will be more risky because of leverage, so make sure we use low leverage to minimize the risk so will be more possible to make profit.

if everything is not good then our safest step comes out first from trading,
 the goal is that we avoid more losses, don't expect too much if the situation does not show improvement, if we don't have reserve capital then we don't need to trade, the risk is too big.
 Bitcoin trading is very fast changing so we must always monitor regularly.

Margin trading is way to make money from any situation of market,  in uptrend or downtrend we can make good profit if we have skill to predict the trend of market. But for margin trading, avoid greedy because this is factor that make loss money,  normally target profit for margin trading is 15% ~25% amonth. 

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.

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

Yes, yes you can make money during bear phase only if you have the knowledge in trading during this time. And this time was actually the hardest time to trade. Trading right now makes it really hard because the market is really unstable.

The fact is that due to the current state of the cryptocurrency market, even daily trading carries a lot of risk. Instability does not make it possible to earn high quality on the difference in price even in a weekly period.

It is indeed a good strategy to use in bear markets (on a short), and ideal in sideways trends - as it makes even very small price movements highly profitable.

When margin trading you’re only required to deposit a fraction of your own personal capital (the margin) in order to gain exposure to much larger positions. The margin’s percent is determined by the amount of leverage utilized, i.e. its proportion to the total position size. For example, if leveraging with 100x, the margin will only be 1% (1:100). Simply put, every $1 becomes as powerful and profitable as $100.  If the trade goes against you, all you stand to lose is the initial amount deposited before the leverage was applied and the position increased.  

The risk: with a smaller margin/higher leverage, there’s less room in the market’s movement if it goes against you, therefore a greater risk of losing your initial deposit (margin).  But having allocated less of your own capital you can gear your portfolio and free up funds to put into other investment opportunities with a diversified portfolio. You could even place an opposing trade on the same asset (a short going against a long) to reduce the risk and outweigh the other’s losses.

So far, ‘prime xbt’ is the best exchange to margin trade with adjustable leverage of up to 100x on all of the 5 major cryptos available on the platform (BTC, LTC, XRP, ETH, EOS).

If venturing down this road be sure make use of stop-loss, protection, and OCO orders to manage risk and set clear entry/exit points (also available on primexbt), and be prepared for losses as well as gains.  

A one post account promoting a new and suspicious platform (https://bitcointalk.org/index.php?topic=5113388.0), under the guise of advice......  ::)

Well, margin is a trading platform that practice every risk taker and investor of borrowed funds from the broker to trade a financial assets and this trading is you are borrowing an investment into other investor and if you will earn a huge profit you will pay a corresponding percent of you borrowed investment. I think it is like and same as the other platform trading. It applicable for the risk taker who want to invest a huge money. It is only for the brave people. That is my opinion about margin trading. I hope this information help you to make a good decision.

I recently tried to experiment with the LipChain project when their price fluctuations were quite positive. I did not manage to recover even the funds that I spent and as a result I am in the red by 50%.

Knowledge is the most important thing for trading as if you are well aware of everything about trading ti can give you good results as you will be able to move accordingly if price falls you will know how to survive for holding and if price is rising you will know selling is beneficial, so I think knowledge is very important now a day to trade, price is not good to trade we will have to wait for more time.

Margin trading is an investment option that is slightly different from the trades we are used to and with a higher risk, higher income potential. With this leverage-driven investment option, you can earn faster money and lose your capital faster. On the other hand, you cannot enter buy / sell orders while trading margin compared to standard trading. The orders you enter here are made as long / short. The long position represents that the price will rise, while the short position represents a decrease in the price.

If I were to ask, using the margin trading in bear market is indeed a strategy to run but only a short period. But you should remember that trading on margin effectively is the best done assimilated with a reasonable amount of experience and strict risk management policy.
On the other hand, the advantage of the margin trading is that you can make a high percentage of gains compared to your account balance.

When someone can benefit from the purchase and sale of coins that they have, it can be said as a margin trading. Doing margin trading requires expertise and skill in analyzing the coins owned. Some people fail because they cannot be patient, in essence when we want to get profit margins then we must be really smart in making decisions. The ability we have will determine what we will get.

Indeed you are right that you can make some money in the bear phase by using the margin trading, but it is not that easy as you say. Because margin trading is generally practice by only the most advanced and experience traders who are very familiar with its mechanics and market patterns, and for that having you to have been so long in the crypto currency industry, I know for sure that you already been in a different ways and subways of life here in the crypto community. It is still up to you if you can make the margin trading work out, because if you think you can, then do it. Don’t hesitate your own capabilities and skills because it is only you who knows yourself more than anyone.

Margin trading allows you to loan money from broker against your funds to increase the buying power. For instance, you deposit $100 and leverage 5:1 to borrow $400 to buy cryptocurrency worth $500. Whether you make money or lose, you will have to pay the borrowed $400. The potential rewards can be high. The main thing is to guess the direction of the price’s movement: will it go down or up. If you do some homework, you will learn how to benefit when margin trading. Up to 10x leverage on Bitcoin and Ethereum offers cex broker - https://cexbro.com/, a newly launched platform. It provides very useful to trader negative balance protection feature that ensures that you won’t lose money than deposited and won’t owe money to the broker. Unfortunately, many platforms don’t offer it.

I'd say margin trading is just buying stocks without having the entire money to do it. Am I right?

In the world of Trading, we know the term Margin as profit. But more often it is denoted in the form of a percentage of profit. So if someone says Margin, what he means automatically is the percentage of Margin.

If you have been trading for a long time I think you already understand the term terms that exist, and also you have understood a powerful trading strategy, but here I think you have a little problem, are you lost or profit?

It is difficult to make a profit in the margin trading because it's more complicated than the usual trading and we need to have more skills to determine what is happening in the market. Once we make a small mistake, we are hard to back to the last price we bought because it depends on the market. But sometimes we are lucky to see the trend is up so we can make a lot of profit.