What is margin trading?

[giarised]

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?

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.

[1714128630]

1714128630

[1714128630]

1714128630

[Fury Road]

 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.

[Cryptopotato021]

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.

[tradebtcEU]

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!

[Lotermity91]

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.

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.

[Sir.Stevenson]

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) 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.  

[wayancrypto]

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.

[rollingstorm45]

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?

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.

[apityeh71]

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. 

[cryptocointrade.com]

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?

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.

[Xenrise]

I think i can make some money in the bear phase! Am i correct?

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.

[ajdaj]

I think i can make some money in the bear phase! Am i correct?

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.

[cryptonovex]

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.  

[tmfp]

‘prime xbt’ shilling

A one post account promoting a new and suspicious platform, under the guise of advice...... 

[GreatOrchid]

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?

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.

[komjhq]

I think i can make some money in the bear phase! Am i correct?

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.

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%.

[Best Dreams]

I think i can make some money in the bear phase! Am i correct?

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.

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.

[BitcoinTurk]

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?

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.

[GreatOrchid]

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.

[gilangIDR]

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.