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.

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.

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)

If he is really a newbie, it would be best for him to stay off margin trade for the moment because margin trade is fir pro traders before he will go and leverage what will make his investment disappeared within a twinkle of an eye. I see most brokers promoting leverage as people who are just trying to make more profit too because of the passion they push into asking people to go into leverage which they quite know alright that its full of dirty risk.

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.

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.

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.

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.

Quite technical or a more elaborative way on introducing margin trading to him 

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.

No matter the simplicity of your definition, margin trade is a highly risky trade to practice, and I would not advise anyone to go for it. There is always a bad luck that follows loan generally, and margin trade loan is not exceptional, you see some of these brokers use one hand to give you loan, and then use the second hand to take it away from you and pretending like it is your lack of skill or strategy that ruined you.

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.

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.

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.

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.

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.

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.

I myself have not tried using margin trading, but I was interested. I read that many very successfully traded in this way. So you can try. It is always useful to learn and learn something new.

So in short instead of predicting a swing of X% your going to aim on far smaller spikes and drops movements what brings the bigger risk.

Before you try margin trading, it is better you try normal trading until you understand the basic of trading so you won't feel confused or difficult to do margin trading. Margin trading will more complicate than the normal trading and it needs more skills to predict where the price wants to move and it's not easy to predict on that. So make sure you know how to do normal trading, learn more about trading, and if you feel that you are ready to try margin trading, then you can go with that but make sure you don't use big money in the early trade.

since the cryptocurrency market is still young, users will still improve the beds and invest correctly.  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.

Yes 100%, Check out my thread https://bitcointalksearch.org/topic/my-trading-journey-free-bitcoin-signals-5162650

Margin trading is quite complex compare to market based trading as you're able to borrow money for your position from a third party hence it's riskier; you need to be more precise in your decision making. It's quite ideal in crypto but I would stick in market based trading for now as the volitality of the market is enough for me to make a decent profit.

I am also against margin trading especially in this market, it is as if the volatility of this market is not enough for people and they want even more risk, it is true we need the volatility in order to make money in whatever market we choose but when I see people margin trading I do not see them reducing their position size so their exposure to the market is smaller in case things go wrong and when they do, and they will if you keep trading, one single loss is enough to wipe their capital completely and then they try to blame the exchange for their lousy money management skills.

It's good to try out new things, but not the ones that are going to land you in very big problem. Have you read about margin trading to understand everything about it and how it works, margin trading is a very difficult kind of trading, so it is something that you will have to learn very well in order to understand it. I have seen a lot of people that got themselves involved in margin and they all ended up in losing and it was even worst for them. It's better for you to continue your normal trading with an amount that you can afford to lose. But if you think you have knowledge in margin trading and you can do it, then it's up to you to try.

Self-control is really difficult to have when it comes to margintrade, and because the more you see the opportunity in margintrade, the more you are tempted to make a move that could really go wrong with the trade completely. One of the easiest way to have self-control in trading is to by all possible means avoid anything that will get you involved in merging trade, because it is really difficult to control.

Margin trade can only be risked by trader that have so much money to gamble with, and may not be affected that much if they make a mistake that will end their trade, but if an ordinary person tries to apply margin trade, I would say that it is going to be a game of luck for such trader, and only luck could help him have a successful trade using margin trade.

Margin trading is good but it has a lot of risks compared to ordinary trading. You can lose or earn profit in less than a minutes. You must study well how to trade before going into margin trading. I know some people quit on it because losing feels like your money instantly disappears.

Planning out a good control is a false thinking here. Once you start margin trading you would know how much stressful it is for the trader both mentally and physically. If you want to remain sane and earn money you should look for other sources of earning. When you take a loan to put on a leverage you are risking your money like anything. Moreover there is the constant pressure of being liquidated and that needs you to pay fees to keep your positions open. Keep losing sleep there and soon your own health will deteriorate.

Being a broker here is nothing different. Unless you find out a method to automate such brokerage. But that is another topic altogether.

Time is crucial with this kind of activity where you would need to sell off on an exact time to utilize up the gap which would generate out profit.

These situations are not common,so having these chances is really seldom but it wont really be that easy to be done because if you
are late on making everything then instead on earning you would rather loss up money.

sometimes many people try margin trading but have no control, and that will disrupt financially. I think this is a big job for traders before making margin trading it would be nice to make careful planning and of course good control.

Usually it have bigger gap between local exchange with international exchange.
You can earn profit but of course, it require right time and some effort which IMO wasting your time if you're only focus on this thing !
It's better if you can do it altogether 

I think the best decision you ever made was to stay off margin trade, margin trade could really be quite tempting mate if you consider the opportunity giving to you to leverage, and leveraging could make you the millionaire you have ever dreamed of, but practically, the risk in margin trade is just too much, although it may be worth risking, but better to risk with little money and at the same time, not to be too greedy about leveraging.

If any trader is to margin trade at all, he or she has to learn to always apply very low leverage to trade, it is safer to use a low leverage than to use a very high leverage that could destroy one’s investment at any point in time of the trade without much preparation.

I am sure you are commenting without knowing even a little bit about what margin trading is. Please stop doing so and giving wrong advice to newbies. This is the reason many people get burnt in crypto and other speculative market because they are over-enthusiastic and willing to jump into every money earning method they can find.

It may be able to generate long term profits but that is a different issue. For someone who is new to the market they should focus on spot trading to understand how the market works and how to manage their money. Margin trading is for the experienced whales who manipulate the market and move it according to their will.

Good thing you follow your guts to always avoid something that you don't understand. Margin trading may be a good thing to get a good profit but it is also too risky to handle. It would require immense knowledge and experience for someone to easily pull off a simple trade especially in crypto which has strong volatility.

Trying new things will not harm you but as many people have advised, you need to have a control. If it is under a MUST you want too experiment with this margin trading, I will employ you to start with a little money that if you eventually lose, it will not affect you financially.

That would be an illogical decision. There is no hard and fast rule that a person with large amount of money should try margin trading. Rather its the opposite, because you would want to save your money from getting burnt if you care for it.

Definitely if you are big whale then this question does not arise, however for those who are hoping to monetize their own pump/dumped market manipulations should do so with a huge bag of money as backup in case things go wrong. This is not something that the average trader would be able to do so I stand against it generally.

Yes, I agree it is very risky especially to unexperienced trader depending on the margin or leverage they put on it. Margin trading is good because it will help increase your funds by borrowing and if you predict correctly then you will win big but if you mess up then it would be a big problem. In my opinion, better do the regular trading because it has lower risk than margin trading.

It seems to me that since the opportunity to trade cryptocurrencies more actively, the morning game appeared a lot of different opportunities to improve their activities and their results.  First of all, margin trading in cryptocurrency, which, due to its specificity, gives a professional the opportunity to get a really good income. Well, that can even be the main source of income for such a trader.

You have not lost any of your margin trade because you are not a greedy type, margin trade is not as difficult or risky as people think it is, but the people that do make margin trade risky are those that do leverage high, there is no way you place a margin trade and leverage low that the market will take your money no matter how deep it is and provided you have enough trading money,.

if the leverage is low, what goes up must come down, and in the part of crypto trading, especially Bitcoin trading, whatever level it plummet to, it will surely rise back to give profit. So we just have to take greed out of this trade completely.

When it comes to crypto currency trading, margin should never be applied and I don’t know why some platforms are encouraging marking when they know the market is always manipulated and there can never be an assurance that margin trade will be safe with hem.

The only market where I can ever advise people to go for margin trade is onforex trading because there is less volatility and market is not that much manipulated in forex. Margin trade can really make any dude so much money when it is used successfully, but it’s application is more like gambling and the chances of winning to losing is 50:50.

This is a copy of an earlier post I made regarding margin, hopefully it will make sense in understanding margin trading a little bit.


Hello All

I've noticed that margin trading questions keep popping up on this forum and there seems to be a lot of misconceptions, misunderstanding regarding this issue as well as just lack of knowledge.  I totally understand this as I struggled to understand margin trading and the issues surrounding it when I first started to trade, so a helping hand from me to those learning to trade and wanting to know more and understand margin trading.

I will provide an analogy in regards to MT (margin trading), in a way that hopefully makes sense to you as it did to me.

I'm sure you have probably you have heard that MT amplifies your gains and losses.  Lets see how purchasing with and without MT effects your account balance and the risks and rewards involved with MT.

The analogy I am going to use is the purchase of a house using a loan/mortgage, as the principle is similar to trading crypto with margin.  This is a transaction many of us make in some points of our lives so understand it better.

You decide to buy a house worth 100k.  Your bank requires a 10% deposit (10k).

You are therefore looking to buy this house on ratio of 10/1 (or another way of saying it is on a leverage of 10/1)

If the bank had required 20% you would be buying at a ratio of 5/1 (leverage of 5/1).

Your initial deposit (or MARGIN) for the house is 10k and this is what your bank requires and will use as a risk mitigating factor to avoid its potential loss on its loan to you (expained later).

lets say your house price after a few months after purchase has increases by 10% to 110k.

So your initial investment was 10k and your house has now risen in value by 10k.  You have therefore made a 100% profit (ROI) on your initial capital investment if you were to now sell the house.  Hoorayyy you have made an awesome investment.

If the house had risen by 1% or say 5% (to 101k or 105k) you would have made a profit/return on investment (ROI) of 10% (1k) or 50% (5k) on your initial investment of 10k.

Now Lets look at if you purchased the house with no loan from the bank (NO deposit/margin) using a full 100k you had saved from work.

Again the value has increased by say 1%, 5% or 10% to (101k or 105k or 110k).  The profit you have made would have been either 1k, 5k or 10k.  So a ROI of 1%, 5% or 10% on a 100k initial investment.  You can immediately see even though your returns were the SAME! your ROI was way LESS with this method of purchase due to the larger amount of capital you used to purchase the house.

Now lets look at the opposite scenario.

The house price starts to decline for whatever reason.

You purchased on a leverage of 10/1 (10k yours 90k bank).

a 1% decrease (house price 99k), 5% decrease (house price 95k), 10% decrease (house price 90k).

If the above scenarios occurred you would have lost 10%, 50% or a total loss of 100% respectively on your initial capital of 10K!!! damn wiped out completely with 10% move against you so no more buying for you!!!

If you had used NO money from the bank and purchased the house with 100k of saved funds.

a 1%, 5% or 10% decrease would have reduced your capital investment by 1k, 5k or 10k respectively, therefore you would be left with 99k, 95k or 90k.

Below is the loss you would occur if you have used different leverage (borrowing ratios) and subsequently (DIFFERENT deposit/MARGIN allowance amounts) with a 10k investment and the price decreases.

10/1 (10k yours 90k bank) 1% decrease =1k loss=10% loss on initial investment=9k
50/1 (2k yours 98k bank) 1% decrease =1k loss=50% loss on initial investment=1k
100/1 (1k yours 99 bank) 1% decrease=1k loss=100% loss on investment=0

As you can see in the third scenario a 1% decrease would have wiped out 100% of your 1k deposit/margin allowance due to the highly borrowed ratio (leverage) amount.

The BIG question most ask is what happens if the decrease in value is more than your initial investment!!!!.  Well let me tell you something, before that even happens the bank will forcefully sell the property as soon as the decrease is close to (60/80%) your initial investment amount and will certainly avoid ANY LOSS to their balance sheet and borrowed amount.  To add insult to injury, they will return a small balance leftover (usually not very much at all after they have taken all their fees to sell your house in an emergency).

Lets now look at a different scenario and say you want to purchase flats worth 30k each instead of a house, and the bank still lends at a ratio (leverage) of  10/1.  The bank therefore requires a 3k initial deposit (or margin required) per flat (3k yours 27k bank).

With your initial 10k you can purchase 3 flats on 10/1 leverage and still have 1k left over.

You have now made multiple purchases using your same 10k deposit and are still looking for another investment for your 1k that is remaining.

Now relating the above to trading crypto using margin.  The principle is exactly the same, you are borrowing to buy or sell a larger position using a small deposit in your account (margin allowance).  You can open one position or multiple positions depending on the leverage you use and an amount from your account will be used as a deposit by the exchange (or otherwise known as USED MARGIN ALLOWANCE allocated to that buy or sell position by your exchange).  If the position moves against you significantly (60/70% decrease), you will receive a margin allowance call (the exchange WARNING you) to say your allocated MARGIN/deposit is low according to their requirements.  They will allow you do close the position or ask you to increase your MARGIN/DEPOSIT by adding more funds

BTC is currently at $8300, to buy or sell 1 full BTC using MARGIN and different LEVERAGE options

a 5/1 position will require $1660 as your margin deposit (1/5th of the total position) - (a 20% negative swing in price for total loss of funds)
a 10/1 position will require $830 as your margin deposit  (1/10th of the total position) -(a 10% negative swing in price for total loss of funds)
a 50/1 position will require $166 as your margin deposit (1/50th of the total position) -(a 2% negative swing in price for total loss of funds)
a 100/1 position will require $83 as your margin deposit (1/100th of the total position) -(a 1% negative swing in price for total loss of funds)

As you can see, you can buy ONE WHOLE bitcoin with only $83 on 100/1 leverage!!!before you get all happy, you need to understand price will only need to move 1% against you, for you to be liquidated by the exchange.


A LIQUIDATION will occur when the exchange forcefully sells your position due to insufficient margin/deposit in your account for that position you opened that has moved against you significantly, and therefore the exchange recovers their borrowed funds from you.  You will get liquidated before you reach a complete loss (known as bankrupt price).

You should not be getting Liquidated or even risk liquidation.  If you are, you are very likely trading incorrectly.  (unless high risk is part of your strategy and you position size accordingly)

Margin trading is something all professionals use and is a step up from normal trading.  As you can see you can buy (go long) or sell (go short) on a larger position using a small amount.

Most professionals usually DO NOT RISK more than 5% of their TOTAL account per trade.  Your risk/loss tolerance should be strongly taken into account when margin trading.

Like others have said in this thread. Its basically like a double-ended sword.

Its great when you are right because you can make multiple amounts of profit rather than being in a 1x position. But its bad when you over-leverage yourself due to greed and a small market move makes you lose all your capital.

This is why stock market is capped at 3.3x margin and only for high cap stocks. You can't do 10x or 50x on a traditional stock market. The reason why is because if it was possible too many people would get liquidated and would have crazy spikes like we have in BTC markets.

Any kind of trading is good when we know how to handle the market situation in the best profitable way,but as a beginner don't examine too much just stick with basic trading technique and keep the trading amount to be less than your holding which can teach you to how to trade and get better at it.

A successful traderer doesn't need to know all trading methods available,one will be enough if he is extremely good at it.

Margin trading is very risky. It is definitely worth trying out. If you are lucky then you can earn a lot. If things can't go in your favor then you can lose a lot too.

This is warning many of us traders has sound several time and it is good we should be told  that trading is a very risky thing and going into trade or making decisions to start trading without adequate knowledge on how trading work is a financial suicidal and it is good to avoid it completely if you cannot taking risks.
margin trading is very profitable to those who has the skills to trade it. I have been trading margin through poloniex and I have never gotten regret of it as though I made some loses but I am above 50% winning and in margin trading that is what matter. I learn to trade margin when I was into forex trading and I understand the risk involved therefore I only put money I can afford to lose.

This is literally the problem when it comes to leverage where its always important to check it out on how those wicks goes on precise or accurate manner.
Not all platforms would really be similar and even its a minor issue but this one can really be a big cause to blow up your account if you don't know how to compare
or do put importance on it.

If you're gonna be a pro trader and work with large amounts, then yes.

I know a few people that trade on Kraken because it's one of the few sites open to US traders that allows them to leverage, however I don't use it because there are often wicks on the site that can go significantly further than wicks on other sites, such as just a few hours ago when Kraken's BTCUSD pair wicked down to 8456 whereas Coinbase Pro stayed near 8800. Pretty important in leveraged trading since one of these wicks can liquidate you pretty easily. Up to you in the end, even with Bitmex's faults I still choose to use Bitmex over any other leveraged exchange (and sometimes Deribit as well).

For me, yes it is worth checking out and if you know how trading works and knows how the market is moving then you can go with margin trading to increase your winning capital but if you aren't sure yet about crypto trading then better don't enter in margin trading.

Whales manipulate every trading market. You just have to follow the ride and have enough assets from both sides to be able to follow their trades. This is tough and very likely would lead to a loss for any newbie trader. Whoever goes in with the idea of making easy money from margin trading is definitely going to lose, be it whatever enticing offer that a broker might be giving them.

If you care about your money and dont have prior experience of making money from margin trading, by all means dont risk it.

You got bored because profiting out of those 100 bucks is too slow and you know deep inside that you are willing to lose those amounts without regretting.
If the amounts were too big then you wouldn't do such thing.Good thing here is that you do able to make 200% on 2 months time which is considerable but
your boredom do hits you up. 

Yes it is worth it and is definitely worth learning about it.

Any person who is a serious trader margin trades.

I would recommend kraken.

Knowledge is key however.   As in my case the best and quickest way I leaned was to try it. I would say start of with a very small balance, familiarise yourself with the various orders, margin allowance, liquidation etc, and then work your way up when you are ready.

It is definitely dangerous but when people get bored it definitely takes out the best of them and when you are at the bottom of a pit with no way out any rope thrown your way is a bliss. I do not trade with margin anymore since I have better things to do but at one point I really did picked it up because I felt like both trading regular or casinos or PC games wouldn't help me become less bored and I had to find something new and wanted to have fun, so I put 100 bucks in and tried it, I said to myself this was closer to gambling than actual trading and I am willing to lose this 100 bucks but all I wanted was to make it as long as possible without losing it, I think I went with that same 100 bucks for 2 months, early days being more involved and later it got boring again and then one day when I was super bored I just went all in on very high leverage and lost it all.

For me, my first impression of margin trading is the danger to investors' assets. It is really a hard game and is hunted by many whales. Sometimes many people bet a lot of money, the whale can see that command and start manipulating the opposite. That's why so many traders disrupt what margin trading is. I do not encourage people to participate in this type of transaction.

Right, it is easy for who already understand. But especially who still new in trading activity, it is something that you must do deep research about it because it is not simple like trading as usual.

Guys that are promoting a margin platform?? How sure are you on whether the platform is safe? You should as well do your own research before you choose to trade on that platform. I can't even tell whether to go for margin trading or not, because I don't know how that will work in trading a cryptocurrency. Margin trading is not quite an easy thing for anyone to do. I will suggest that you fist gather a lot of skills in the normal trading and after then you may decide to go for margin trading. Or if you think you're good in it already, then you can go ahead and try.

Good thing you've met a couple who explained to you about margin trading. But it is not a typical crypto day trader that you have known. If you are pertaining to a day trading, then it is scalping or a swing trading. Have they explained to you the big risk associated with margin trading?

I suggest, if you are well interested in that field, you can do it on yourself. DYOR, try bitmex testnet: https://testnet.bitmex.com/ and explore how margin trading works.

margin trading for crypto is not really worth the hassle. I mean, there are people that do it. But you really don't need to margin trade in crypto in order to make it. margin trading in crypto is way riskier than traditional investments because crypto is too volatile. in forex for example, some pairs see only a 0.5% move for a whole day. this low volatility gives forex traders the luxury to use large leverages. However, some cryptocurrencies go 100% or more a day. this means that even leverage of 1:2 could easily stop you out if you are on the wrong side. Be sincere, how many of you have actually made money in bitmex in the long run? Don't margin trade in crypto because you don't need to. the volatility of the crypto markets is enough risk for your account, even without margin. You shouldn't jeopardize your account by using margin for crypto, because trust me, you will make more money with a pure account in the long run than with a leveraged one

Everything under the market or exchange should be emphasizes and look. Charts, bid and selling price must be seen and observe because they are important aspects that might help us. Margin trading must be uses also. It will help to earn. However, using of that strategy is risky. Because if you don't know how to use it then you just wasting your capital.

I agree with you that trading carries enormous risks.  But I would like to note that all activities regarding cryptocurrency are very complicated and it is very difficult to earn income without risk.  Not only traders, but also investors lose their money.  If we talk about betfinex, then we can recall the theft and hacking of wallets in August 2016.  And if we talk about bad investments, then we can recall the end of 2017, when many people sold their property, just to invest money in Bitcoin.  The results are already known to all, when in 2018 the market fell.

I watched a trader live who did margin trading in around late 2017 when the bitfinex crash occured. He lost probably 2 million of dollars in a blink of an eye, erasing all his BTC and altcoins and leaving him with about -100k balance at his main account. This guy started to cry in front of the camera ... So margin trading may make you rich, but it may devastate you in no matter of time, too.

Margin trading is actually a great tool for those who can take advantage of it. But if you don't know how to use it efficiently, you can lose lots of money it would be like gambling.

I have also heard a lot about this. Margin trading is really scary and if but we can't get a lot of experience in risk management, it's really easy to lose more than 50% of the capital or even 100%.
I have also heard many professional traders who have lost a lot in 2018. It is really a game of chance and we should not participate.

Margin trading can make you bankrupt in no matter of time. One lost trade where you went all in and its over. Its definitly another beast than standard trading, you should definitly know what you are doing. There are lots of vids showing "pro" traders who lost everything due to a missplaced trade ... all in a blink of an eye. Just watch them to get a feeling what margin trading means.

Reality Recently, even Forex has become fascinated with cryptocurrency, but today I consider the best option for quick earnings, this is options trading.  It is very good that today this sphere of activity is broken and there are more such trading platforms.

Crypto currency Margin trading is a good one and some how easy to make profit particularly for those who have good knowledge of such trading from Forex trading, this is so because it involves a lot of technical analysis before one can make good profit from margin trading. So, if you want to give it a try then you have to grounded in technical analysis.

What you are talking about is spot trading and not margin per se. Margin trading needs you to correctly predict the price of coins and you are given a loan in the form a margin from the site in order to use that to make a fortune.

This may seem very enticing but the truth is that margin trading is very risky and newbies who fall for that money making scheme only end up broke. If you have experience in it then by all means do participate in it. But if you are new to trading then go for spot trading. Learn the basics first about spot trading and then you will understand how risky margin trading actually is.

Definitely, it does. I almost always open the positions with different kinds of leverages
It also helped me to leave the job and get unlimited profits - here you can see the deals I make and almost each is a leveraged one. The major point here is to comply with risk and money management

https://bitcointalksearch.org/topic/i-quit-my-job-to-do-full-time-crypto-trading-made-12-btc-profit-last-month-5146383

But take note even if you are pro trader or have knowledge doing trading you can make a mistake in your trade but Yes I agree to the scenario its difficult trading platform if you compare to regular exchange site, I suggest before entering in margin trading make a testnet we have some margin site that offering demo or test account like in bitmex.

This is just another way for binance to make more money with this, because a lot of people will lose their investment to them. Margin trading has never been so easy in a market of forex that is even less volatile, not to talk of cryptocurrency market that price could drop at any time and keep going dip.

It depends on coins though, if I have to go for margin trading, I will only do that on bitcoin and never try that on altcoins. It is still better to margin trade bitcoin knowing fully well that we are still in BTC uptrend and BTC remains the market dominant, but for alts, it is very risky.

It depends on the time spans your aiming at. On short fast trades for sure you can benefit from margin trading in the way you normally would trade but the loss/gain with margin is higher.

Margin trading is worth to try, but only if you have skills because margin trading will be too difficult to do. I already try margin trading, and it's not as simple as the usual trading, we need to have more information related the coin, we need to have skills to analyze the price deeply so we can detect where the price wants to move. But I think it could be done by practicing more and more, especially if we are not stopped from learning on margin trading.

If you dont have knowledge about it then why are you commenting on the same?

Margin trading is different from spot trading and in many ways it is more of a gamble then actually trading. Trading or spot trading is based on some skills and knowing when to buy and when to sell. It is much easier and safer in terms of practice then margin trading. Moreover there are several scam groups out there which are described as pump signal groups but are nothing but scams. We dont want new traders to fall prey of them and I generally tell them to avoid margin trading at the first go.

It really is not a game of chance as you say. it's always for technical analysts, they always know the types of waves and levels of trading in a day and can make "Long" or "Short" decisions. I don't know much about margin trading but I think it's really a very difficult type of trading and it's only for those with experience in analysis.
For ordinary people like us, we should only buy low and sell high.

I don't have much knowledge about margin trading but somewhat I know if that kind of trading which based on the luck has to get succeed which mot suitable for the people who want to stay longer as a crypto trader so just keep doing what you are doing for the year and get better at that is better than learning new things because it makes you to start from the beginning.

Nothing wrong if you want to do something new, but at first learn deep about it. Because from what i heard, margin trading is really complicated. Even me not try it yet until now because sometime i see my friend got MC and he always stressed about it. 

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.


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.

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.

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.

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 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.

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.

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.

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. 

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.

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.

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.