Topic: Is Margin trading really profitable? (Read 252 times)
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.
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.
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.
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. 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)
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.
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
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
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. Because we see the same situation during the whole month, rally up and down.
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)
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)
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.
I think margin trading with high leverage is similar to betting, this is can be profitable if the prediction correct but if wrong we will loss alot of money in short times. I been try futures crypto trading in Okex with 10 times leverage and just a few hours my money gone. So dont use all money in to margin trading. Other way to make money when crypto in bearish is make invest in stock market that has lower risk.
Margin trading only for professional trader who has good risk management. If you just jump in to trading is better only use 1 or 2 times leverage to minimize the risk. Will be profitable or not this is depend on the each strategy and money management of each trader.
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.
Keep a part of your money or savings for the Bitcoin so as to handle and manage other important works as well for emergency use. Do not put all your wealth here because it can result in huge loss if you do not know how to handle. Because we see the same situation during the whole month, rally up and down.
You trade only with the Bitcoin and other coins if you know how to handle it which depends upon your knowledge. Almost all trading processes are profitable if you have the proper knowledge.
Margin trading can be very profitable if you use leverage wisely. It is important to follow traders rules of setting stop loss levels and knowing where your target take profit. This is very different from investing which has long-term goals. Traders are working to gain quicker smaller profits in shorter time frames and are looking for opportunities.
Margin trading is just another form of trading, only with borrowed funds. Now, there's nothing wrong about shorting bitcoin whenever the market is down. It only gets messy when the market suddenly shifts the tide and began rising without further notice, that is then you'll lose your position and the chances of you profiting becomes limited. Personally, I'd stick to the buy-and--hold strategy. True that your funds will be idle once you started keeping your coins but then, any profit made would be yours without risking of losing it, and it will just wait for you to sell them once you deem the opportunity is right.
Margin trading is a good trading strategy but much risky and you must know your A b c before venturing into margin trading otherwise you will burn your accounts.
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.
Because we see the same situation during the whole month, rally up and down.
Others have good result out of doing margin trades. Others don't have the same experienced.
So why not check it for yourself to see what will be the result. Of course as usual, it does have risks so better managed it properly on the way. If you think you can do it and you already have set of strategies that will be taked place then go now and pushed it.
Just proceed with caution as always. Goodluck.
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.
Margin trade is highly profitable but also very risky. I was trading margin trade at poloniex before and it is possible you can double your investments and at the same time lost all your investments. If you know how it works you will actually makes some good money from it. Because we see the same situation during the whole month, rally up and down.
In fact, margin trading is not as bright as you imagine it. This is very risky. This type of trade is worth only go to an experienced trader, which can well calculate everything and quickly react in any situation. Otherwise, you most likely will remain with a big minus.
Therefore, first get knowledge and experience in ordinary trading and then make a decision whether you need margin trading or not.
Therefore, first get knowledge and experience in ordinary trading and then make a decision whether you need margin trading or not.
Margin trading is really hard to choose because carefully pick the high potential platform and more potential coin. But day traders are know the best one in all time and risk factor is increase similarly profit also increase in trading. All the beginners are don't involve in this margin trading so high risk and high profitable.
With the right and original approach, any business can be made with profit. My friend is engaged in margin trading and as far as I know it earns well. If necessary, I can give his contact.
The margin trading depends a lot on the reputation of the place where the investor decides to participate in the deposit and for me the delivery of his money to others use is not good. I do not have much information about the forms of investment trust so I do not support this. Jump to: