What is the ROI on margin trading BTC or any other cryptocurrency for that matter?
There is no given ROI for margin trading. It like all trading, dynamic markets. You create your own ROI and the potential is limitless.
What is margin Trading?
So, basically, margin trading is another name for trading with borrowed funds.
It enables traders to enhance their profits on successful trades as the amount invested can be substantially bigger than what they can realistically afford to trade with.
The word “margin” refers to the amount of trader’s personal funds in his margin account (collateral). Naturally, the bigger the collateral, the more funds trader can borrow from the exchange to leverage.
In cryptocurrency margin trading, investors can leverage 2:1 (2x), 3:1 (3x), 20:1 (20x), or even 100:1 (100x) ratio, depending on the platform and the amount of risk they are willing to take.
But, obviously, margin trading is a very risky business, and the same way as it can generate hefty profits, it can engender serious losses for traders embarking on such an adventure.
Cryptocurrency exchanges enabling margin trading differ in many aspects, such as liquidity, leverage, interest rate, fees, trading pairs, etc. This time we are going to compare the four of them:
Bitfinex
Kraken
BitMEX
Huobi
Read the complete article about
crypto margin trading platforms.