Thank you for this useful and helpful piece of guide on margin trading. It will definitely help beginners, margin trading is not something very risky. If you know how to take advantage of it in crypto, it is basically very useful tool.
It is good guide and thank you for it. It will at least give then an idea as how to get started in the crypto game. Normally people who are new in the game loose money by investing in the wrong coin or maybe in the wrong time but afterwards when they do such a research, the are very able then to make good decisions. So yeah, this is great. 
Topic: A Complete Guide to Margin Trading for Beginners (Read 403 times)
I have never tried margin trading, and this thread helps me get to know a good way to do margin trading.
maybe this is worth trying to get other benefits in trading.
Well, knowing about margin trading and sometimes using a little money to experience this method is enough, do not sink too deep into margin trading because margin trading is very risky, pressure in this method can be double or triple normal trading, more precisely, we are borrowing money to gain more money, which means we are risking. In addition, many large whales are always in the battle of margin trading, they can always push prices down very quickly or increase very fast, do not manage and calculate the situation carefully, we will die without any reaction maybe this is worth trying to get other benefits in trading.
I like you article, it is very self-explanatory and for the fact that it spelt out all the risks that are involved in marketing trading for those who wishes to use margin trading in their trading, but I would not really advise margin trading because anything that involved loan is not too good for a business, moreover, I feel when you use broker’s leveraging tools, it is more of benefit to them than it is to you, because they know that 50% of margin trader will always loose, and once you lose, they automatically become the winner.
Using forex trading when I was trading normally with the little$350, I was winning my trade even though the earnings were little, until I got introduced to leveraging by a rep of their company with I did followed her advice, my first leveraging was the one that saw the end of my trade in forex.
Using forex trading when I was trading normally with the little$350, I was winning my trade even though the earnings were little, until I got introduced to leveraging by a rep of their company with I did followed her advice, my first leveraging was the one that saw the end of my trade in forex.
To anyone that is adding to the OP, I thank you for it, but this is just an introduction towards what they could expect towards margin trading and what to have them look for, but anyways, it's great to see suggestions that could bring more focus and in detail.
You might want to add that shorting on Bitmex actually carries out less risk compared to going long, the risk is a bit lower but can be significant. Here is a table showing this:
I didn't know that there's a big difference to what could happen if you are in a Short or Long position in terms of liquidation, thanks for your information. Dude, that is only some points that superficially describe what is margin trading. That thing can't be called "a complete guide to margin trading". It looks more like an intro for complete guide.
Maybe a change in title could suffice, thanks for pointing it out. The introduction could be the best thing to say.You should also be using limit orders whenever possible on Bitmex, because market orders have a 0.075% fee tied to them that is applied to your entire leveraged position, and you actually get a fee rebate of 0.025% for using limit orders. This doesn't sound like a lot, but fees add up very quickly and you want to make sure fees are at a minimum whenever you're trading.
That's why there are "Post-Only" options that could really benefit you in the long run, making sure that you are market-making and preventing additional fees towards that could lessen your profits. A good thing to point out.I would like to add a list of some Exchanges that have Margin Trading.
~snip
I have only tried BitMex in regards to margin trading. I haven't used my Bitfinex account and the Huobi Margin Trading. For Poloniex, I have only used the normal trading there. ~snip
Do you have any idea for eFintech.life which provides macro-level arbitrage?Thank you in advance!
I don't know that but I am using an Arbitrage bot, you could see my thread here and services thread here 
I would like to add a list of some Exchanges that have Margin Trading.
These all listed exchanges have margin trading as far as I know. My advice is to choose an exchange which has a good trading volume and friendly user GUI. Happy trading!
P.S. I don't advertise any exchanges mentioned above.
These all listed exchanges have margin trading as far as I know. My advice is to choose an exchange which has a good trading volume and friendly user GUI. Happy trading!
P.S. I don't advertise any exchanges mentioned above.
I have never tried margin trading, and this thread helps me get to know a good way to do margin trading.
maybe this is worth trying to get other benefits in trading.
maybe this is worth trying to get other benefits in trading.
I think I would give this a try and see if it would suites me well.
Because we know that every trader have different strategies,
So I would give it a try since you already made a complete guide it is up to us to understand and follow it.
Because we know that every trader have different strategies,
So I would give it a try since you already made a complete guide it is up to us to understand and follow it.
Thank you for this useful and helpful piece of guide on margin trading. It will definitely help beginners, margin trading is not something very risky. If you know how to take advantage of it in crypto, it is basically very useful tool.
Also good to note that the amount of longs and shorts on a site like Bitmex at any time is in a 1:1 ratio, and when you're margin longing you're swapping positions with someone that's shorting and vice versa. The great thing about Bitmex is liquidation which means longs have unlimited profits and limited downside unlike trading contracts for Bitcoin futures in a place like CME, where you can lose more than your initial margin. This means Bitmex contracts are safer to trade than contracts elsewhere, but leverage can still wipe out your account if you don't use it correctly.
As for a few tips on Bitmex, because of the fees involved in liquidation you can actually save a lot of money if you're not using a tight stop on a position by setting a stop market a few points above your liquidation price in the case of a long. You should also be using limit orders whenever possible on Bitmex, because market orders have a 0.075% fee tied to them that is applied to your entire leveraged position, and you actually get a fee rebate of 0.025% for using limit orders. This doesn't sound like a lot, but fees add up very quickly and you want to make sure fees are at a minimum whenever you're trading.
As for a few tips on Bitmex, because of the fees involved in liquidation you can actually save a lot of money if you're not using a tight stop on a position by setting a stop market a few points above your liquidation price in the case of a long. You should also be using limit orders whenever possible on Bitmex, because market orders have a 0.075% fee tied to them that is applied to your entire leveraged position, and you actually get a fee rebate of 0.025% for using limit orders. This doesn't sound like a lot, but fees add up very quickly and you want to make sure fees are at a minimum whenever you're trading.
Very informative guide.However,I wouldn't recommend margin trading to traders and have a limited capital.Traders with limited capital usually have limited experience and knowledge as well,which might lead to mistakes and huge loss.A trader has to practice standard crypto trading for 2 years minimum,before he jumps into the margin trading wagon.
I know trading will not for everyone especially when you are using Margin trading. Our possible profit will vary on how much capital we use to start trading.Oftenly, we only know basic in trading but somehow isn't effective at all. If I have enough capital to start with, I may consider using Margin trading rather than to stick for the old one. This is also important to elevate our learning and also strategies this time become more profitable.
Very informative guide.However,I wouldn't recommend margin trading to traders and have a limited capital.Traders with limited capital usually have limited experience and knowledge as well,which might lead to mistakes and huge loss.A trader has to practice standard crypto trading for 2 years minimum,before he jumps into the margin trading wagon.
This is a great guide for someone who has never tried margin trading. You have emphasized the risks, which are huge comparing to normal trading, with the dreaded margin call being on the top of them. The main benefit is primarily the increased buying potential, as you pointed out.
I would just add one point: you are already taking huge risks by even engaging in margin trading. Minimize the risk by always trading a portion of your entire portfolio. I know some people are striving to get huge gains and get them fast. As a result, they trade their entire account with huge leverages. Better to be safe than sorry. Therefore, decide to trade a portion of your account with smaller leverages, so if you get liquidated, at least the majority of your funds are still there, and you get to have many additional tries/trades.
I would just add one point: you are already taking huge risks by even engaging in margin trading. Minimize the risk by always trading a portion of your entire portfolio. I know some people are striving to get huge gains and get them fast. As a result, they trade their entire account with huge leverages. Better to be safe than sorry. Therefore, decide to trade a portion of your account with smaller leverages, so if you get liquidated, at least the majority of your funds are still there, and you get to have many additional tries/trades.
Margin trading can works wonder for traders who are discipline and know the risks involved so that he can easily manage them. This is definitely not the right way for people who have gambling as the mindset as it can lead to a big disaster. The most important benefit with margin trading is the leverage offered to the user but of course it also entails risks so one should know the right strategies to contain risks while maximizing potential for profits. As what you said, better safe than sorry.
Nice guide it is really helpful and useful for us who doesn't know too much in trading,
I think I would spend sometime to study this margin trading and try it out on some trading simulator.
This is why this forum is one of the best source of knowledge when it comes to crypto currency.
I think I would spend sometime to study this margin trading and try it out on some trading simulator.
This is why this forum is one of the best source of knowledge when it comes to crypto currency.
I use to do margin trading on bitfinex with DASH, I didn't really experience much borrower there lowering my rate would be a disadvantage on my side too.
The only applicable indicators one could use is the RSI and Fibonacci for which you can see where the support and resistance in advance. Been in babypips for years too. There are trading systems shared in the forum unlike here. It only shows the cryptospace is in the very early stage.
Emm...
Dude, that is only some points that superficially describe what is margin trading. That thing can't be called "a complete guide to margin trading". It looks more like an intro for complete guide.
If someone is searshing for a place with good amount of information then you can go to this website: https://www.babypips.com/learn/forex
It is about forex but all those things also applicable to crypto.
Dude, that is only some points that superficially describe what is margin trading. That thing can't be called "a complete guide to margin trading". It looks more like an intro for complete guide.
If someone is searshing for a place with good amount of information then you can go to this website: https://www.babypips.com/learn/forex
It is about forex but all those things also applicable to crypto.
The only applicable indicators one could use is the RSI and Fibonacci for which you can see where the support and resistance in advance. Been in babypips for years too. There are trading systems shared in the forum unlike here. It only shows the cryptospace is in the very early stage.
You have to know how to use the RSI in order for it to be beneficial. If you check the daily chart for bitcoin for the past 6 months, the RSI was extremely overextended when the crash at 6000$ happened and stayed that way for weeks, similarly now, after the big bull move, the RSI was overextended for weeks. There is a good way to take advantage of the RSI, bounces. During this small bull run, every time the RSI crossed into the over-sold area in the 5 minute chart, bulls bought the dip instantly, a ton of trading opportunity there.
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Though I am related to trading for few years but never heard of Margin trading.
You're related like are you trading's relation? Lol and you saying you haven't heard about margin trading is something very common among most crypto traders since margin trading isn't that common in the cryptocurrency industry and only few exchanges offer such option. I personally haven't tried margin trading in cryptocurrency but i have done so numerous times back in my days of forex trading. I won't recommend margin trading to any newbie reading this thread as it's more risky than actual trading resulting to the possibility of you lossing all your fund. Stick to the regular trading don't be too greedy unless you're an expert.
I use to do margin trading on bitfinex with DASH, I didn't really experience much borrower there lowering my rate would be a disadvantage on my side too.
The only applicable indicators one could use is the RSI and Fibonacci for which you can see where the support and resistance in advance. Been in babypips for years too. There are trading systems shared in the forum unlike here. It only shows the cryptospace is in the very early stage.
Emm...
Dude, that is only some points that superficially describe what is margin trading. That thing can't be called "a complete guide to margin trading". It looks more like an intro for complete guide.
If someone is searshing for a place with good amount of information then you can go to this website: https://www.babypips.com/learn/forex
It is about forex but all those things also applicable to crypto.
Dude, that is only some points that superficially describe what is margin trading. That thing can't be called "a complete guide to margin trading". It looks more like an intro for complete guide.
If someone is searshing for a place with good amount of information then you can go to this website: https://www.babypips.com/learn/forex
It is about forex but all those things also applicable to crypto.
The only applicable indicators one could use is the RSI and Fibonacci for which you can see where the support and resistance in advance. Been in babypips for years too. There are trading systems shared in the forum unlike here. It only shows the cryptospace is in the very early stage.
Though I am related to trading for few years but never heard of Margin trading. Thanks for this informative thread about margin trading.I cached the last line which is reflecting If anyone is experienced in trading only he/she should start Margin trading.I think margin trading is more riskier than actual/normal trading because here you have to payback with interest which is a real challenge.Those who are good at trading but cant make good profits because of less capital can try Margin Trading IMO.
Emm...
Dude, that is only some points that superficially describe what is margin trading. That thing can't be called "a complete guide to margin trading". It looks more like an intro for complete guide.
If someone is searshing for a place with good amount of information then you can go to this website: https://www.babypips.com/learn/forex
It is about forex but all those things also applicable to crypto.
Dude, that is only some points that superficially describe what is margin trading. That thing can't be called "a complete guide to margin trading". It looks more like an intro for complete guide.
If someone is searshing for a place with good amount of information then you can go to this website: https://www.babypips.com/learn/forex
It is about forex but all those things also applicable to crypto.
This is such a very biog help for all of us here good Guidelines. Hope you add some more especially making some good analysis towards the market. Still i am a beginner on bitmex and my emotions get back while doing trades there unlike in the altcoins as long as i am holding my tokens , no expirations and i will only loss amounts if i sold it unlike bitmex that has a liquidation. I am broke on that trading exchange but, i am learning more tactics form other pro bitmex traders watching it and applying on my own.
But I saw that it requires a huge amount before you can start an account in margin trading so how much the minimum of making an account?
Right now, I’m using BitMex as my exchange with margin trading. The $10000 on Bitfinex is history IIRC. I recently registered there but didn’t get to deposit any coins to trade. Not yet anyways. You might want to add that shorting on Bitmex actually carries out less risk compared to going long, the risk is a bit lower but can be significant. Here is a table showing this:
It shows that even with the 1x leverage, the risk of liquidation when going long is quite possible, however the risk of liquidation when going short is almost impossible. The difference is smaller the higher the leverage is, however since you don't really want to leverage more than x20 or so, it doesn't matter.
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