Margin trading. Where to start?

[FanEagle]

for beginners you have to practice trading if you directly to margin trading you will get big loss, dont see big profits from margin trading if you cannot trade because other people will easily get your money in margin trading, if the biggest market for margin trading is BITMEX exchange

Yes, margin trading cannot be a starting point for a trader due to its inconsistent results but traders may switch over into margin trading after hands on experiences in spot trading. This way they may handle all the pressures of margin trading and convert their all of efforts into profits from the small capital. Yes, you may think about margin trading only when you feel like you have relatively small capital to convert your efforts into profits for a given time frame.

Personally I never suggest anyone to get into margin trading as it is a platform for wiping out all our capital when market moves slightly against our expected market direction. Better always sticking with sport trading as it gives enough time to wait and hold our positions on the occurrences of unexpected market directions.

I would actually suggest to go for margin trading only if you have gained some previous experience in spot trading. Margin trading is a lot helpful for all those who have limited capital but posses the capability to overcome huge risk for huge profits. Margin trading actually allows us to trade wit 3 times more capital than the actual capital invested.

This makes us able to gain major profits keeping risk as constant. There are number of people who are gaining huge profits from margin trading but also there are some who had none profits but also lost each of their funds used for margin trading. In-experienced traders going for margin trading would never give you profit.

[Spaffin]

I would actually suggest to go for margin trading only if you have gained some previous experience in spot trading. Margin trading is a lot helpful for all those who have limited capital but posses the capability to overcome huge risk for huge profits. Margin trading actually allows us to trade wit 3 times more capital than the actual capital invested.

This makes us able to gain major profits keeping risk as constant. There are number of people who are gaining huge profits from margin trading but also there are some who had none profits but also lost each of their funds used for margin trading. In-experienced traders going for margin trading would never give you profit.

The fact is that I always meet a fairly large amount of information that professional traders main type of earnings is margin trading, which gives a very large profit.  But at the same time, everyone who reads such lines should understand that the professionalism of such traders should be at a great height, with a very large amount of knowledge and experience.  Margin trading makes it possible to use large amounts of capital for trading that a third party provides to the user, and you need to take into account the fact that it is almost like a kind of loan, non-payment of which leads to big problems.

[Kurokonobasuke]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

As a long time trader, in looking for the best trading platform is to difficult in the way when they process our digital coins, because in one wrong move our profits will be neglected. And also many trading platforms are not trustworthy, some degraded services and slow withdrawals. In trading we don't need a high profits, we need a platform that will surely secured our digital money. I would like to introduced to you this trading platform named "Yobit.net" it is a legitimate trading platform that will surely secured your account to others hackers. I'm using yobit.net for a long time so that I'm really sure that it is safe, because it uses double authentication to verify that you using your own account.

[rexxarofmoknathal]

I would actually suggest to go for margin trading only if you have gained some previous experience in spot trading. Margin trading is a lot helpful for all those who have limited capital but posses the capability to overcome huge risk for huge profits. Margin trading actually allows us to trade wit 3 times more capital than the actual capital invested.

This makes us able to gain major profits keeping risk as constant. There are number of people who are gaining huge profits from margin trading but also there are some who had none profits but also lost each of their funds used for margin trading. In-experienced traders going for margin trading would never give you profit.

The fact is that I always meet a fairly large amount of information that professional traders main type of earnings is margin trading, which gives a very large profit.  But at the same time, everyone who reads such lines should understand that the professionalism of such traders should be at a great height, with a very large amount of knowledge and experience.  Margin trading makes it possible to use large amounts of capital for trading that a third party provides to the user, and you need to take into account the fact that it is almost like a kind of loan, non-payment of which leads to big problems.

Concerning the matter of margin trading, the consequences can be so high that many people decided to settle instead for digital trading.That way they themselves have control over their money, in the end having stable and less risky profit for the long term is more important than having a large burst at extremely high cost.

So like most of these guys on here, I wouldn't recommend margin trading unless you absolutely have the knowledge and large amounts of cash you can do without since the risks are so high.

[TheUltraElite]

The fact is that I always meet a fairly large amount of information that professional traders main type of earnings is margin trading, which gives a very large profit. 

Margin trading takes up the bigger share if you compare it with spot trading. The outcome is bigger and thus is attracts a lot of people specially during times of high market movements. There is chance to make money in both ups and downs here.

But at the same time, everyone who reads such lines should understand that the professionalism of such traders should be at a great height, with a very large amount of knowledge and experience. 

They are professionals here but you cannot deny that they wont have some sort of inside knowledge or that they are having a team monitoring the world news every now and then so they dont miss out on trades.

Margin trading makes it possible to use large amounts of capital for trading that a third party provides to the user, and you need to take into account the fact that it is almost like a kind of loan, non-payment of which leads to big problems.

Well that is the risk of margin trading. You have to use some money to be able to ask for a leverage and then use that to place the contracts.

[kro55]

I'm not new to margin trading, but I noticed this strange maths at BitMEX that I can't explain. I should profit from a trade but I ended up with loss.
So I opened long position with Limit order at 6528.5, order quantity 1075 contracts, leverage 10x. Order was executed (multiple Buys) and it cost me:
0.0439+0.0291+0.0214+0.0038+0.0663=0.1645 XBT

Then I opened Limit sell at 6609 and received only 0.1626 XBT.
How is it possible that I lost money but I sold at higher price than I bought??

Screenshot from BitMEX Trade History:

[CHENIEN]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

in my opinion, it is difficult to trade because of the large amount of capital and collateral, don't bet your money on a doubtful transaction to avoid high risk.try to choose bitcoin for a long term investment.

[TheUltraElite]

in my opinion, it is difficult to trade because of the large amount of capital and collateral, don't bet your money on a doubtful transaction to avoid high risk.try to choose bitcoin for a long term investment.

These are difference in opinions and methods you know. Spot trading vs Margin trading is a debate and this never ends. Some people like to take risks and try the gambling portion that options and futures provide them while some try to hold it as an asset and sell or buy to profit. While the market is being stagnant or not moving much up or down the spot traders are basically helpless and not having any trade to do because for them to make a profit they need the high upswing to sell or high downswing to buy.

So there comes the demand for another method of making money which is Margin. Thats how this has developed and mind you volume of margin trading is way more than Spot trading in average.

[tvplus006]

...So like most of these guys on here, I wouldn't recommend margin trading unless you absolutely have the knowledge and large amounts of cash you can do without since the risks are so high.

Before you start margin trading, you need to understand the spot market. And only when you yourself can correctly determine the direction of the market, you can try to take the minimum leverage. The most important thing is not to use the maximum leverage that reaches X100.

[wozzek23]

Before you start margin trading, you need to understand the spot market. And only when you yourself can correctly determine the direction of the market, you can try to take the minimum leverage. The most important thing is not to use the maximum leverage that reaches X100.

I guess all the traders who are into margin trading must have been into spot trading earlier. I mean only because of not finding enough profits from spot trading, most of traders are going into leveraged trading but as per many people's experience margin trading is not at all profitable for them because other than usual struggles a trader may face in spot trading, they must need to undergo lots of other things to take care in margin trading which makes it more complicated. I agree marginal trading is profitable at the same time it is highly risky if you miss few things to follow/take care.

I agree, to enter margin treading a trader must understand fully the spot trading but I do not think that alone will ensure their success in margin trading.

[Eplus_Team]

I would say  bitmex, bitfinex and poloniex, but to be honest I dont really enjoy doing margin trading. I prefer to choose and hold long term Bitcoin or Altcoins.

[TheUltraElite]

Before you start margin trading, you need to understand the spot market.

But I dont think that it is how people who go rekt start off.
It happens to them like they are scrolling FaceAche and InstaHater () and then see this ad which tells them about getting 100x returns using bitcoin. Now this broke guy has heard of bitcoin and thinks this is my chance. So they click the link and sign up without even knowing that its called margin trading and basically a gambling, not spot trading.

And only when you yourself can correctly determine the direction of the market, you can try to take the minimum leverage. The most important thing is not to use the maximum leverage that reaches X100.

Of course for beginners 2x is enough. Even with that they are going to lose a lot of money before they can make any. So the trader needs to have enough cash at hand to tide over this time and also to keep liquidation of positions at bay.

[Lizzylove1]

Because of the fear of one losing more fund than one is trading by plummeting into payment of debt in an unregulated market like cryptocurrency wherein TA can be rendered useless by some manipulations makes me stick with spot trading. I have seen good technical guys have their trades reverse because of news from some corner that may even be a FUD.

[BitcoinTurk]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

You should have good knowledge of leverage rates before you start trading margin. For the leverage you will use, you should pay attention to the calculations such as the interest you will pay on an hourly basis, the percentage of that leverage, the rate of doubling your money and the zeroing rate, and then you should learn the basic trading rules. As a suggestion, I can recommend you the FTX exchange because it was the best quality among the exchanges I have used so far. Especially compared to services such as Binance, there are many trading pairs here, high trading volume, reliable support team, and besides all these, it offers a chance to trade with USD. There is something I want to emphasize here, you can trade with USD, not USDT.

[wxxyrqa]

I believe that every trader who plans to engage in margin trading should represent the risks of this activity and initially invest little money in order to gradually become involved in the margin trading process.  but in my opinion, a person should first of all have the maximum trading skills on the spot market, that is, have very good experience in simple buying and selling cryptocurrencies, which includes the ability to read cryptocurrency charts and the ability to make the right decisions. But any trade as a result should not do without fixing earnings and diversifying investments in order to really observe the results of its activities, since this positively affects not only the psychological state, but also the further results of your trade.

[BD Money365]

When you want to start  margin trading the most important thing is know about technical analysis  and than know "aware of the risks" margin trading is very risky.you need to know how to management risk and used stop and take profit features on various leverage exchanges the sky will be your limit.  consider the notice on margin trade on a good number trading sites "don't invest the capital you lip service have enough money to lose".

[PaySpace]

Bitmex is a great platform with a small fee (about  0.075% taker fee)

[spike420211]

Start with math.First, learn how regular trading works, create a demo account and practice until you feel absolutely comfortable.
Then study the numbers that are offered in margin trading, including interest and exchange commissions.
Calculate on paper the difference between regular and margin trading, including all possible risks.

[cosmofly]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

margin trading is really not the place for newbie to trade. It is very much related to your trading psychology and strategy. To minimize your risk, you should learn a lot about popular indicators like RSI, Fibonacci, EMA. Those are the indicators that help you choose a good open order point and take profit accurately. But first, I recommend you to use the demo account to experience. margin trading is a high risk game that can make you lose all your money.

[tvplus006]

Because of the fear of one losing more fund than one is trading by plummeting into payment of debt in an unregulated market like cryptocurrency wherein TA can be rendered useless by some manipulations makes me stick with spot trading. I have seen good technical guys have their trades reverse because of news from some corner that may even be a FUD.

Margin trading, unlike spot trading, allows a trader to earn money not only when the cryptocurrency market is growing, but also when it is falling. This way you can always be inside the market and not wait for it to grow again for trading. But do not forget about the risks that may arise using margin trading.