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Author Topic: Is Margin trading really profitable?  (Read 214 times)
Binugon
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July 29, 2018, 09:35:10 AM
 #21

of course all types of trades have risks, but with this type of trading margin needs a lot of considerations, calculations and good experience, because with the help of capital from the margin must certainly really calculate in advance of the capital and earnings in order to meet the margin of capital gained, of course also can make a positive influence and can motivate because with the obligation of the margin.
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cryptoking1981
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July 29, 2018, 12:50:13 PM
 #22

A little bit about margin/leverage for those who are interested.  Risks and advantages..


You have $1000

You buy btc with NO leverage!

BTC 10% increase = $100 profit... Your account is $1100 and has grown by 10%

BTC 10% decrease = $100 loss... Your account is $900 and has lost 10%

NOW leverage trade of  5/1  ( ie 1 part yours, 4 parts borrowed/loaned from the exchange), so you trade with $5000

BTC 10% rise = $5000 + 10% = $5500.     $500... wow great profit, your account has grown by 50%... ie $1000+$500= $1500

BTC 10% decrease= $5000-10% = $4500.  $500 loss!! wtf.. you have decreased your account by 50%!!!  $1000-£500=  $500 left!!


Now imagine if you used 10/20/50 or even 100 times leverage!!

Your profits are magnified but so are your losses.....


IMPORTANT NOTE... the exchange will only allow you to lose YOUR money/margin.   Soon as its gets close to their borrowed funds they will liquidate you (force sell your BTC so they can get ALL their money back)

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July 29, 2018, 12:56:13 PM
 #23

Explain please about margin trading,on Bitmex for example, on this red market,is the best way to make some profit - to make short positions with margin and then long and repeat and repeat?
Because we see the same situation during the whole month, rally up and down.
We all take advantage of the results of the margin, the sell and buy that we do must be right because if not right then we will experience losses. In calculations then we can indeed repeat it regularly, but the situation and conditions must also support because without the right momentum then we may not be able to take advantage of the existing situation.
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July 29, 2018, 01:04:56 PM
 #24

margins promise more benefits but with big risks too
because margins can spend all your assets in an instant and make you my very
the difference with trade without margin you can not lose all your assets and the real profit gained from the spread between buy and sell you do
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July 29, 2018, 02:13:29 PM
 #25

Now almost all popular crypto currencies for which margin trading is available are in the global bullish trend, and it is impossible to trade against the general price trend. Therefore, I would not recommend that you engage in margin trading now.
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July 29, 2018, 02:28:35 PM
 #26

A little bit about margin/leverage for those who are interested.  Risks and advantages..


You have $1000

You buy btc with NO leverage!

BTC 10% increase = $100 profit... Your account is $1100 and has grown by 10%

BTC 10% decrease = $100 loss... Your account is $900 and has lost 10%

NOW leverage trade of  5/1  ( ie 1 part yours, 4 parts borrowed/loaned from the exchange), so you trade with $5000

BTC 10% rise = $5000 + 10% = $5500.     $500... wow great profit, your account has grown by 50%... ie $1000+$500= $1500

BTC 10% decrease= $5000-10% = $4500.  $500 loss!! wtf.. you have decreased your account by 50%!!!  $1000-£500=  $500 left!!


Now imagine if you used 10/20/50 or even 100 times leverage!!

Your profits are magnified but so are your losses.....


IMPORTANT NOTE... the exchange will only allow you to lose YOUR money/margin.   Soon as its gets close to their borrowed funds they will liquidate you (force sell your BTC so they can get ALL their money back)


Leveraged trading is more or less like an gambling so don't try it if you can't afford your loss.Any kind of trading comes with their kind of risk level too so if you don't have enough experience better try it with small level and then try big amount once you enough familiar with it.But if you ask me don't try any type of trading with bitcoin other than long term hold ,from this you can earn huge profits without any efforts or technical analysis.
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July 29, 2018, 03:17:34 PM
 #27

It's not profitable, it's very dangerous. Crypta is a very volatile tool and if you are trading with your shoulder, then there is a high probability of losing all funds. If you are new to trading, then do not advise you to trade like that.
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August 14, 2018, 07:54:21 AM
 #28

If you want to make money when the price of crypto crash just like now,  Bitmex platform is one of the best choice,  but to avoid big risk for the better only use leverage 1 to maximum 5 times. Beside Bitmex,  others platform that give profit by make short potition is CFD crypto trading which this product offer by many forex broker. Just use lower leverage to minimize the risk.

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September 25, 2018, 07:45:20 AM
 #29

I thinking if we trade crypto on Bitmex when all crypto on downtrend include Bitcoin is not really profitable, because we should be make deposit by Bitcoin and the value of deposit will be also going down. Margin trading is profitable or not will be depend on the how leverage and risk management that we use. There many platform that provide crypto margin trading, and margin trading will be more risk than spot trading if we use high leverage.

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