Topic: Margin Trading (Read 109 times)

Yes, it is. You can borrow money from the broker but you must also have a corresponding fund in your account to start margin trading. I just started margin trading in bitmex and I must admit that it's very hard for me at first to understand it. So grateful, I have a friend who guided me step by step and help me to englighten things up. Btw, there is this testnet in bitmex to try a margin trading before doing it on actual. This may also a big help.

Hence, remember that this is very risky if you do not understand some indicators which I am encountering right now.

margin trading is the process by which a trader borrows money from the broker in order to either buy or sell more stock than that trader would otherwise be able to afford.
margin trading thus operates in some ways like short term loan and allows trader to increase the leverage and buy power that they have.

marging trading has been added to coinbase and its bitcoin exchange.
if you are unfamiliar with trading and exchanges,margin trading is when you borrow money from broker to buy or sell more stock than you can afford.

Thank you for your explanation. So what do you think about getting profit from margin trading? I mean like we can use it for long term or short term trading, or when the fundamental is good or poor? I usually margin when the volume is high. But several times I got a margin call because of dump or pump immediately.

The process is fairly simple. A margin account provides you the resources to buy more quantities of a stock than you can afford at any point of time. For this purpose, the broker would lend the money to buy shares and keep them as collateral.
In order to trade with a margin account, you are first required to place a request with your broker to open a margin account. This requires you to pay a certain amount of money upfront to the broker in cash, which is called the minimum margin. This would help the broker recover some money by squaring off, should the trader lose the bet and fail to recuperate the money.

Once the account is open, you are required to pay an initial margin (IM), which is a certain percentage of the total traded value pre-determined by the broker.   Before you start trading, you need to remember three important steps. First, you need to maintain the minimum margin (MM) through the session, because on a very volatile day, the stock price can fall more than one had anticipated.
For example, if a Tata Steel stock priced at Rs 400 falls 4.25 per cent and the IM and MM are 8 per cent and 4 per cent of the total value of the shares bought, respectively, then the trade-off 8%-4.25%=3.75% will be less than the MM. In this case, you will either have to give more money to the broker to maintain the margin or the trade will get squared off automatically by the broker.

Sorry, i'm still new here. Can you explain about margin trading in cryptocurrency? I'm looking for the explanation but not yet find it here. I've ever do margin trading at poloniex exchange, how about you?