Is margin trading worth checking out?

[cheezcarls]

Hello everyone!

I’ve been trading in some few exchanges (e.g., Binance, Okex, Mercatox, MetaMorph Pro, etc.) from time to time. However, there’s something that I want to explore.

Recently, I’ve met a couple of guys who is promoting a margin trading platform. It’s the first time I’ve encountered a margin trading platform, and they said that it does not have the open orders feature like most crypto exchanges have.

Just like the crypto exchanges, we also invest and trade an amount that we could afford losing. But what are your thoughts about margin trading? Is it ideal for crypto day trading?

I would love to hear your thoughts or opinion regarding margin trading. Thanks in advance.

[1715081998]

1715081998

[joniboini]

Learning new things is always good in general, including this one. Keep in mind that margin trading has a bigger risk compared to your usual buy low sell high trading activities. So, I'd definitely recommend you to learn about margin trading if your goal is to make profits through trading, however, never get too emotional/greedy when you actually do it. Always remember to check your risk/reward ratio, and never ever use very huge leverage as it could definitely rekt you.

[TheUltraElite]

OP, you say you have been trading for sometime, so I guess you already know about when to buy and when to sell - thats called spot trading.

Now margin trading is a different ball game altogether. It needs you to "borrow" some amount of either currency and use that on a leverage to predict the future price. If you manage to predict properly you get a return which is pretty lavish. However the downside is that the loss is huge if incurred. Also in order to keep your position open you would have to pay liquidation fees regularly till you cancel that order.

This is like I said but not as simple as I have put it. You need to be alert and full of different tricks and know that margin trading site's UI like the back of your hand. I do not suggest margin trading to any person because to me, it nothing but gambling. Actual spot trading is not completely gambling though.

[#BitLucky]

Just don't transfer what you can't lose.
For the start I recommend micro amount because you will click something wrong, it's not exactly user friendly. 

[Awesomus Maximus]

and they said that it does not have the open orders feature like most crypto exchanges have.

What do you mean by "open orders" feature. If you mean that you can buy and hold indefinitelly, you are right. With margin trading, you buy contracts that either expire after some time, or you have to pay founding fees.

Just like the crypto exchanges, we also invest and trade an amount that we could afford losing.

The only differenence is that you can trade with more money than what you actually have. All the other aspects are more or less the same. But you don't have to borrow. Nobody is forcing you to do so.

If you are used to trading on binance, most marging trading platforms allow you to go Short in additon to what you would usualy do on Binance, which is go long. This is a huge benefit over most of the "normal" exchanges.

[xvids]

Learning new things is always good in general, including this one. Keep in mind that margin trading has a bigger risk compared to your usual buy low sell high trading activities. So, I'd definitely recommend you to learn about margin trading if your goal is to make profits through trading, however, never get too emotional/greedy when you actually do it. Always remember to check your risk/reward ratio, and never ever use very huge leverage as it could definitely rekt you.

I agree knowledge is worth it people couldn't take it away from you and you could use it as a weapon .
There is always a risk on everything and for me everything that could be use to gain profit specially in trading is worth checking out.
We all need different tactics,skill or strategy in order to gain profit we all know that one strategy isn't enough to make a living out of trading we need to be flexible in order to survive in the crypto market.

[mk4]

Ah. Margin trading. There's a reason why even some trading experts suggest against using margin trading. While it can earn you money, it can also mess you up. It might be able to work out for you, IF you actually try to learn and not just full on gamble with your money, and IF you know how to control your risk. Those are 2 huge IFs.

I'm not trying to move you away from trying, but you might want to read this recent Reddit thread: https://www.reddit.com/r/CryptoCurrency/comments/bv1kj7/i_lost_everything/

[cryptjh]

I have only done margin trading one time,  that was 4-5 years ago, and that was with the stock market, it works good for a few days but then I got liquidated and lost everything. With the huge movement in crypto, changes for being liquidated is much higher. So if I was you I would not go into margin trading with crypto.

[jazmuzika217]

Hello everyone!

I’ve been trading in some few exchanges (e.g., Binance, Okex, Mercatox, MetaMorph Pro, etc.) from time to time. However, there’s something that I want to explore.

Recently, I’ve met a couple of guys who is promoting a margin trading platform. It’s the first time I’ve encountered a margin trading platform, and they said that it does not have the open orders feature like most crypto exchanges have.

Just like the crypto exchanges, we also invest and trade an amount that we could afford losing. But what are your thoughts about margin trading? Is it ideal for crypto day trading?

I would love to hear your thoughts or opinion regarding margin trading. Thanks in advance.

Margin trading is must more risky if you compare to regular trading site because if you make a wrong move by picking buy order your capital can be liquidated or be lose all compare to regular trading site you can hold if even if the price falling down but the good thing in margin trdaing you can earn profit even the market is in the red line.

[exstasie]

I’ve been trading in some few exchanges (e.g., Binance, Okex, Mercatox, MetaMorph Pro, etc.) from time to time. However, there’s something that I want to explore.

Recently, I’ve met a couple of guys who is promoting a margin trading platform. It’s the first time I’ve encountered a margin trading platform, and they said that it does not have the open orders feature like most crypto exchanges have.

Binance is adding margin trading; it's currently in beta testing. Okex has already supported margin trading for a long time. You can try it there without using a new platform.

Just like the crypto exchanges, we also invest and trade an amount that we could afford losing. But what are your thoughts about margin trading? Is it ideal for crypto day trading?

It really depends on your trading style and level of risk aversion. If you're a profitable trader who can handle emotions well, then using leverage is a great tool for your arsenal. On top of magnifying your profit potential, it means you can keep less funds on exchanges to achieve the same trading profit.

I recommend using 2-3x leverage for a while before messing with 5x or 10x. I don't use anything above 10x because crypto volatility is too high. You're just gambling at 20x and higher.

[Genemind]

Binance is about to add margin trading in their platform.
It would be effective for those who have been doing trading for a long time. If you find it risky and you're uncomfortable with it, better trade the basic and normal way that you know.
How ever, it's still worth trying but you have to learn how it works first.

[Ailmand]

Margin trading is risky if you are not that experienced in trading since you can borrow money and trade higher than you actual asset. This could bring you a lot of profit if you can predict the price properly, on the other hand the risk is you can lose more money. Just stick to what you are used in doing first, and do not rush things out.

[Ucy]

Margin trading is very risky as well as very rewarding.  You could lose all your fund in a flash and could make lots of money in a short time unlike with normal cryptocurrency trading, .
It is recommended for adventurous or experienced trader.

[BitHodler]

Just don't transfer what you can't lose.
For the start I recommend micro amount because you will click something wrong, it's not exactly user friendly. 

I would say that it's a better plan to start paper trading before you start risking your hard earned money. If paper trading doesn't work out for you, then you most likely have to see that as a sign to stay far away from trading.

I know that there is a difference psychologically between paper trading and real trading in terms of risk taking, but the general aspect of it is still the same. I have done it myself too, and it confirmed what I thought, I suck at day trading.

Right now I'm just doing some buying low selling high, which could either take a day to profit, or months in some cases. My goal is to profit in the most sustainable possible way, and not to profit in the fastest possible way.

[josephdd1]

margin trades carry their own risk no wonder exchanges say it is for advanced users only. I think you should first learn the basics properly, learn to read market swings and a little bit of TA never hurts. Only then you should move into margin.

[exstasie]

Just don't transfer what you can't lose.
For the start I recommend micro amount because you will click something wrong, it's not exactly user friendly.  

I would say that it's a better plan to start paper trading before you start risking your hard earned money. If paper trading doesn't work out for you, then you most likely have to see that as a sign to stay far away from trading.

The problem is paper trading doesn't entail real emotions, real greed and fear. You need to have real money on the line for that. Lots of people can paper trade successfully but will blow up their accounts when putting real money on the line. Until you start trading with real money, you'll never know whether you have what it takes to trade successfully.

Point taken though, if you suck at paper trading, you're not going to be any better at the real thing.

[traderethereum]

Hard to say that margin trading is ideal for daily trading because it depends on the skills of each trader.
If he can analyze where the trend wants to go, then he can choose margin trading because he can get more funds with leverage.
But if he cannot analyze with better, then the margin trading is not good for him.
The margin trading could be too risky if we cannot analyze where the price wants to go because, in every minute, the price will always move and sometimes, the price will run to go up and down and that could make us get confused to close or to continue the trade.
But that will not be a problem if you have skills and experience in trading so at least, you can predict where the price wants to moves.

[huhhuh18]

Margin trading is somehow more rewarding than normal trading that's only if you're able to predict well. But this is one reality you should be aware of, margin trading comes along with predictions so if your predictions are wrong for normal trading, then they could as well be wrong for margin trading. You gotta be careful and learn more about it before you put your money in.

[Shenzou]

It is true that you might get more rewarding experience from margin trading as it allows you to increase your buying power, however it is not an easy task since we are talking here about crypto market where trading with you own money is risky enough let alone borrow money from the exchange and than return it with interest for a very small profit, what am saying here that it is not for everyone and defiantly i don't think that it goes well with the day trading strategy.

[dark08]

Margin trading is like casino especially in Bitmex exchange site you need a certain experience before doing trade in margin becuase a single wrong move can cause losing all your capital unlike centralized and decentralized exchange site you can hold it for longterm but in margin you can earn a huge profit because the power of leveraging this is a good features in margin exchange site.