Topic: Is margin trading worth checking out? (Read 1012 times)
Margin trading can be your way to become a millionaire as can be your way to lose all your money. It uses by professional traders that know what they are doing. The risk is that if market goes against you, you will end up losing your asset, unlike normal trading, the asset only decrease in value. The benefit is trading with large amount than your actual capital which means big profit if the market goes in your direction.
I think margin trading is risky, even though it can make a lot of money even when the market is down. but if only for a moment you ignore, you can lose everything. Like my brother, he did not place a stoploss on the night of September 25, and as a result, when the price of BTC plummeted, he lost more than $ 12k. while he's only earned a few dozen dollars in one day these days. I realize that this trade is really risky and does not encourage you to trade there.
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/
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/
Margin trading is a great way to magnify profits on stocks that I was able to purchase without the exact required money. It’s a favorable trading strategy when I want to cash on price fluctuations over a short period of time, and I do not have enough cash on me. Margin trading is able to greatly improve my purchasing power not forgetting the fact that there is continuous monitoring of the margin trade facility by SEBI. To be Honest, I manage my trades 100% i don't enter a trade without knowing my entry and exit strategy - I think this has kept me in the game from trading in Forex to trading in cryptocurrency.
I definitely think that people should give it a shot because the majority of new investors lack huge amounts of money to purchase stocks. With this form of trading there is a high chance to make large profits when the profit earned exceeds the margin. However, you should be careful while margin trading and invest in it only if you have enough money to bear a momentary move against your position and meet the margin call.
You need to be a very good trader with a lot of knowledge in trading in order to correctly build a strategy taking into account all the risks in margin trading. And the risks there are enormous.
Given the unpredictability of the market, you can get into pretty bad situations when you are in a margin.
Given the unpredictability of the market, you can get into pretty bad situations when you are in a margin.
You know, margin trading is quite an interesting and complicated thing. Many times I tried to figure out the differences between day-trading and margin trading, but each time I failed as many articles or forums didn't provide me some comprehensible explanation. So, I beg your pardon but I can't answer your question. Although, I'm also interested in what the best option is - margin trading or day trading)
Quite technical or a more elaborative way on introducing margin trading to him 
That user seemed like an innocent newbie so I tried to explain it as simply as possible. But I doubt they would actually read my comment let alone reply with their own comments.As pro as I am in trading, what leveraging did to me in 2007, I will never ever forget it in my life, although I was suing it on Forex then, but if not for leveraging that made me loose over $10800, I would have probably be a bitcoin millionaire by now and be counting lots of bitcoin. I was tempered to leverage high and it was like a second, the whole market went down without stop loss used, all money lost.
Quite technical or a more elaborative way on introducing margin trading to him
That user seemed like an innocent newbie so I tried to explain it as simply as possible. But I doubt they would actually read my comment let alone reply with their own comments.Quote
I can say that this is some sort more in gambling rather than on a typical spot trading.I cant even bare to set up 5x-10x.How much for those people who do try 100x? That's pure gambling.
I am sure you know that shitmex and so on promote 50x leverage and tend to give these people either a rush of adrenaline (for noobs) and a heart attack (for margin traders). Either way they market it using that feature and least to say, they have got a good level of following, not to mention the number of comatose people after trading there.
I dont want to convince you of anything, but I think that margin trading is very profitable. Anyway, if you're interested, you should check it out. You always need to learn something new and try new ways of earning. And no matter what your result will be, you will in any case get a good experience.
You're right mate, people could check it if they have an interest in it but we don't need to please them.We have to know that margin trading is quite difficult to understand especially for beginners and less experienced traders that is something considerable and not all of us are able to risk their time in doing this.
Yeah, I think it's worth of trying. If you have enough experience, necessary skills and knowledge, so why not?
Because none of them are important in margin trading. I would have asked you to try it out for a quick look but I would advice against that too. In order to margin trade you need to take a "loan" on that site and your debt will be due. Once you use that for leveraging a multiplied return you can pay back the debt and rest of the money in yours. But this means you have to make an accurate range prediction of the asset you are trading on. This is not spot trading where you buy assets, here you buy a contract. Moreover if your position is not met within a certain course of time you would have to keep paying liquidation fees to stop being liquidated and keep that position open.
All in all, it is a high risk trade - better to say gambling.
I can say that this is some sort more in gambling rather than on a typical spot trading.I cant even bare to set up 5x-10x.How much for those people who do
try 100x? That's pure gambling.
Yeah, I think it's worth of trying. If you have enough experience, necessary skills and knowledge, so why not?
Because none of them are important in margin trading. I would have asked you to try it out for a quick look but I would advice against that too. In order to margin trade you need to take a "loan" on that site and your debt will be due. Once you use that for leveraging a multiplied return you can pay back the debt and rest of the money in yours. But this means you have to make an accurate range prediction of the asset you are trading on. This is not spot trading where you buy assets, here you buy a contract. Moreover if your position is not met within a certain course of time you would have to keep paying liquidation fees to stop being liquidated and keep that position open.
All in all, it is a high risk trade - better to say gambling.
I have used margin trade before and despite the fact that I was highly skilled about it, I still lost everything even when I tried as much as possible not to be greedy, I didn’t even leverage high and I understand all the risk that is involved. I think trading at spot is still the best for anyone that is interested in trading at all, it is better to make the little profit from normal trade than the promises of big profit from margin trade, only to lose the capital too.
Yeah, I think it's worth of trying. If you have enough experience, necessary skills and knowledge, so why not?
Because none of them are important in margin trading. I would have asked you to try it out for a quick look but I would advice against that too. In order to margin trade you need to take a "loan" on that site and your debt will be due. Once you use that for leveraging a multiplied return you can pay back the debt and rest of the money in yours. But this means you have to make an accurate range prediction of the asset you are trading on. This is not spot trading where you buy assets, here you buy a contract. Moreover if your position is not met within a certain course of time you would have to keep paying liquidation fees to stop being liquidated and keep that position open.
All in all, it is a high risk trade - better to say gambling.
Yeah, I think it's worth of trying. If you have enough experience, necessary skills and knowledge, so why not?
It's pretty simple math. If you trade in a plus without a margin and are psychologically prepared not to change your strategy when using large amounts, then you should try margin trading. The problem is that most cannot trade profitably, even without using margin. In addition, there is a category of traders who cannot maintain their strategy when using margin trading. This is a very big psychological problem, which was with me as well.
In margin trading, you have to borrow funds to finance your leverage. Therefore the return / risk profile will always be slightly skewed against
you compared to unleveraged trading because of the borrowing costs. The higher the leverage you use, the worse the skew will be;
therefore sound trading principles would suggest to use leverage only at tightly controlled levels and on occasions where you have an extraordinary confidence in the trade you are taking.
you compared to unleveraged trading because of the borrowing costs. The higher the leverage you use, the worse the skew will be;
therefore sound trading principles would suggest to use leverage only at tightly controlled levels and on occasions where you have an extraordinary confidence in the trade you are taking.
Every type of trading has advantages and disadvantages and it's not designed for everyone. Margin trading is not for the beginers to my opinion because some previous experience in trading is needed.
Still everything depends how you estimate your competences and knowledge, how much risk you can take and how fast could you recover from potential loss. That is why is best to try multiple types and then decide what suits you the best and where can you make the best profit.
Beginner or no beginner,margin trade is an extremely risky venture and it should be applied with care, and No matter how professional the trader may claim he or she is to the call, leveraging high is highly stupidity and a game of luck that should never be toiled with. I have seen so many people that have leveraged an unreasonable amount like 100x, and have lost so much practicing trade. Still everything depends how you estimate your competences and knowledge, how much risk you can take and how fast could you recover from potential loss. That is why is best to try multiple types and then decide what suits you the best and where can you make the best profit.
I usually suggest margin trade for someone who knows how to control him or herself and would not be greedy. It is someone who has self-control that will not risk leveraging high in other to make more profit, he would leverage low and any amount he sees at that time will be enough, it is not about a long stretched trade, it is the number of times you can make profit within a particular time.
I have studied this issue quite a lot and made sure that margin trading is the best choice for professionals and very often for such people this kind of trading is the main source of income. Apparently for margin trading you need to get more knowledge and experience.
For me margin trading is like gambling. It’s too much high risky and espeically for the newbie. I already tried and losses some money and decided to leave margin trading. Cause its not suitable for me.
Every type of trading has advantages and disadvantages and it's not designed for everyone. Margin trading is not for the beginers to my opinion because some previous experience in trading is needed.
Still everything depends how you estimate your competences and knowledge, how much risk you can take and how fast could you recover from potential loss. That is why is best to try multiple types and then decide what suits you the best and where can you make the best profit.
Still everything depends how you estimate your competences and knowledge, how much risk you can take and how fast could you recover from potential loss. That is why is best to try multiple types and then decide what suits you the best and where can you make the best profit.
since the cryptocurrency market is still young, users will still improve the beds and invest correctly.
Which is why wall-street seasoned investment bankers make a fool of the wannabe traders in crypto. Most of the new traders entering this scene are people in their early 20s and other kids who dont understand market psychology and thus end up making a lot of mistakes. With margin trading, I feel bad to see these people get rekt and thus I prefer to tell them to avoid it.Quote
Through Victory and error, we all gain experience, but since there is a great desire to make a good profit, then each of us tries any type of trading, including margin trading. Although risk is always present everywhere.
You have no idea what you are talking about. Margin trading is just gambling about predictions. Not like spot trading where you still hold an asset and you are not going complete rekt.Jump to: