Margin Trading ... EXPLAIN like am 10yr old

[Ucy]

 ANSWER & EXPLAIN any (or all) of the below questions like I am a kid:

1. What is Margin Trading

2. What is Margin Call

3. Trading platform with the best Margin ratio or something...

4. Best Platform for Margin Trading

5. Can Margin Trading be possible on a $50 dollar account.

6. Safest time to Margin Trade

7. Safest Cryptocoin to Margin Trade with

8. How is the Margin Trading profits shared

[medusa13]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

[Ucy]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

 Thanks Medusa,

Need some clarification on No 2  (or someone else can pls help) :
How Wrong does it go before investment is liquidated? A little wrong movement can't just get your investment liquidated, right? 

[ttookk]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

 Thanks Medusa,

Need some clarification on No 2  (or someone else can pls help) :
How Wrong does it go before investment is liquidated? A little wrong movement can't just get your investment liquidated, right? 

Once you hit the point your collateral matches the current loss, thus covering it, you get margin called.

[cheze]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

 Thanks Medusa,

Need some clarification on No 2  (or someone else can pls help) :
How Wrong does it go before investment is liquidated? A little wrong movement can't just get your investment liquidated, right? 

Depends on the leverage.
If your leverage is very high, then yes ... little movement in the wrong direction and you are out.

5. Can Margin Trading be possible on a $50 dollar account.

Definitely possible with $50, just on a small scale. You could buy, let's say Bitcoin, and margin trade it on Poloniex, also one of the biggest exchanges, currently it is relatively slow though.

[bustedsynx]

1. What is Margin Trading

The surest way to get rekt especially if you don't have the risk management and trading skills.  

[Ucy]

1. What is Margin Trading

The surest way to get rekt especially if you don't have the risk management and trading skills.  

Lol.. It probably going to take me many months to start Margin Trading. Ain't even going to Click on "Margin Trading" if i don't understand that thing up to 80—90%

[Ucy]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

 Thanks Medusa,

Need some clarification on No 2  (or someone else can pls help) :
How Wrong does it go before investment is liquidated? A little wrong movement can't just get your investment liquidated, right? 

Thanks all!!
But pls I still need more explanation... Maybe you give an example or use analogy.

The only way I learn stuff quickly is to practice or with analogy. Former is risky unless on a demo account. Guess no demo Account yet for Crypto Trading

[andreibi]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

 Thanks Medusa,

Need some clarification on No 2  (or someone else can pls help) :
How Wrong does it go before investment is liquidated? A little wrong movement can't just get your investment liquidated, right?  

Thanks all!!
But pls I still need more explanation... Maybe you give an example or use analogy.

The only way I learn stuff quickly is to practice or with analogy. Former is risky unless on a demo account. Guess no demo Account yet for Crypto Trading

There is demo account on http://bit.ly/tradeforexwithbtc

You can practice with fake bitcoins. Trade BTC/USD or LTC/USD. Treat the fake btc like real and practice for three months while learning TA.

[enervey]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

 Thanks Medusa,

Need some clarification on No 2  (or someone else can pls help) :
How Wrong does it go before investment is liquidated? A little wrong movement can't just get your investment liquidated, right?  

Thanks all!!
But pls I still need more explanation... Maybe you give an example or use analogy.

The only way I learn stuff quickly is to practice or with analogy. Former is risky unless on a demo account. Guess no demo Account yet for Crypto Trading

There is demo account on http://[Suspicious link removed]/tradeforexwithbtc

You can practice with fake bitcoins. Trade BTC/USD or LTC/USD. Treat the fake btc like real and practice for three months while learning TA.

Thanks for sharing that website! I've been looking for something like that for a long time and they make it quick and easy to get started. I'll definitely be practicing there.

[Ucy]

1. you borrow stuff you dont own so you can trade with it, giving a collateral.

2. if your "investmet" is going the wrong way, bank or exchange will liquidate you, selling you assets at the time they are worth what you borrowed, so the lenders dont lose anything, but you lose all.

 Thanks Medusa,

Need some clarification on No 2  (or someone else can pls help) :
How Wrong does it go before investment is liquidated? A little wrong movement can't just get your investment liquidated, right?  

Thanks all!!
But pls I still need more explanation... Maybe you give an example or use analogy.

The only way I learn stuff quickly is to practice or with analogy. Former is risky unless on a demo account. Guess no demo Account yet for Crypto Trading

There is demo account on http://bit.ly/tradeforexwithbtc

You can practice with fake bitcoins. Trade BTC/USD or LTC/USD. Treat the fake btc like real and practice for three months while learning TA.

Thanks alot

[umbara ardian]

ANSWER & EXPLAIN any (or all) of the below questions like I am a kid:

1. What is Margin Trading

2. What is Margin Call

3. Trading platform with the best Margin ratio or something...

4. Best Platform for Margin Trading

5. Can Margin Trading be possible on a $50 dollar account.

6. Safest time to Margin Trade

7. Safest Cryptocoin to Margin Trade with

8. How is the Margin Trading profits shared

2.Margin call is a condition or condition where the remaining funds used to withstand market movements are not sufficient anymore. You will experience a margin call if your transaction suffers a loss.

[Pearls Before Swine]

I don't trade on margin,  but I could explain it to a 10 year old.   It's borrowing money to speculate,  and that's why I don't do it.  A lot of individuals and even entire corporations have gotten hammered because of doing that with stocks and derivatives.  If bitcoin went to $500 tomorrow,  you'd be wiped out before you could even look at the margin call.  Good luck if you decide to do it, because you'll need it.

[Seville]

Learn about slippage too whila margin trading, it can severely affect your profits  

[andreibi]

I don't trade on margin,  but I could explain it to a 10 year old.   It's borrowing money to speculate,  and that's why I don't do it.  A lot of individuals and even entire corporations have gotten hammered because of doing that with stocks and derivatives.  If bitcoin went to $500 tomorrow,  you'd be wiped out before you could even look at the margin call.  Good luck if you decide to do it, because you'll need it.

But still a lot of traders use margin trading because it's the fastest way to profit in a market with better liquidity. Those with huge capital cannot or won't trade with low cap markets because it takes a long time to fill all their large positions. And exiting a small market is done slowly and not to crash the market.