📊Margin trading introduced to OneExBit: how should it be used?
✅In our last major update, we have added the feature that so many of our users have requested: margin trading. In this post, we will explain some basics of margin trading and why it should be used with utmost caution.
❇️Margin trading, or trading with leverage, comes in very handy when you don’t have enough capital to generate significant profits. Essentially you borrow funds from the exchange (or another party) and add it to your deposit. Exchanges charge a margin fee for this service, just like banks do for loans. When you see it written that an exchange provides x10 or x20 leverage, for example, it means that you can obtain 10 or 20 times as much money as you have in your deposit. Thus, if you only have $1000, you can trade with $10 000, $20 000, and more (some exchanges offer leverage of x100 and more).
❇️Almost all traders who win big and become seriously wealthy do so using margin trading. A single successful trade can make one a millionaire. While tools like high-frequency trading (HFT), swing trading, or arbitrage, generate a stable yet moderate income, leverage trading is the one that can make you rich. However, it has its dangers.
❇️When you trade with leverage, you are using the exchange’s money to increase your capital manifold. This means that you risk not only your deposit but also the funds belonging to the exchange. Naturally, the exchange (or any company that provides you with leverage) wants to minimize its risks, so it takes measures to protect itself. If the market turns against you and you start losing money, your trader’s instincts might tell you to wait it out – after all, short-term hypervolatility is not uncommon in the crypto market, and a reversal is always possible. However, the exchange may see it differently – it is afraid of losing the funds it had lent you and is not willing to bet on a reversal. So it can force you to close your order – this is knows as a margin call. This will limit your losses in case the market keeps going against you, but it will also strip you of all hope of recouping the loss. A margin call can mean a total, devastating loss, so most traders who use margin trading tend to close their orders before they receive a margin call.
❇️The key thing to understand about trading with leverage is that it is associated with much higher risks than average trading using just your own deposit. Think about it as of getting a loan in a bank and gambling it in a casino. If you are very good, you can earn a profit that other traders only dream about. But if you are not so luckyÉ
❇️We have added margin trading functionality to OneExBit because we believe that it is essential for any serious crypto trading terminal. Now you can trade with leverage on all those integrated exchanges that allow it. The maximum margin size will depend on the rules of each individual exchange. However, we stress that you MUST be an experienced and proficient trader to use leverage – and even in that case, you must exercise extreme caution and not get carried away.
❇️Many more exciting new features are coming in our next releases, so stay tuned to our updates. Make sure to purchase some ONEX coins on CryptoBridge to enjoy all the benefits of OneExBit and truly maximize your profits!
🔗Official links:
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🔹Whitepaper:
https://oneexbit.com/whitepaper-onex.pdf🔹Medium:
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https://www.reddit.com/user/smmoneexbit🔹Bitcointalk:
https://bitcointalksearch.org/topic/ann-pos-mn-an-all-in-one-crypto-trading-app-windowsmacos-5129693🔹YouTube:
https://www.youtube.com/channel/UCXTH2La9LXL26asXsCQiJ9w🔹Wallet Download:
https://github.com/oneexbit/onex-core/releases/tag/v2.2.1🔹MNO:
https://masternodes.online/currencies/ONEX/🔹MNCN
https://mncn.online/coins/ONEX🔹Crypto-Bridge:
https://wallet.crypto-br