Topic: Margin trading. Where to start? - page 5. (Read 22623 times)

You guys dont even read the comments from other users before putting in your post right?

Just because some exchange is your favorite does not mean that the OP should visit them for margin trading. Be objective in your views and not personal choices unless clearly stated. Huobi is another ponzi scheme market for those who like to drink the coolaid thinking their altcoin will become huge.

Anyway I dont you have any experience with margin trading because it is not same as spot trading and needs a lot of clam nerves with a large volume of spare cash to be able to profit from.

Try margin trading on the Binance and Huobi exchanges. One of my favorite exchanges where I started trading regularly. The main thing is not to forget to study the theory well in order to understand what you are dealing with.

The risk is too high even though can be managed and the only way to still manage it is when you leverage low, but we have some greedy people that would never take this into consideration, so they will still tend to leverage high to the extent of losing their money, sometimes when I hear margin trade, I see it a system that is created to punish the greedy ones because why would you borrow when you can simply continue to trade with whatever you have normally and then keep turning over.

It is good to take some risk though, but we still have to be very wise in taking risk, risk like that of margin trade to me is not the type of risk that I will really say that it is worth it, it is better to just buy coin and then be a long term holder than to go into margin trade.

Margin trading involves borrowing capital at relatively high interest rates from a cryptocurrency exchange so you can access increased leverage. This allows you to access increased profits if the market moves in your favor, but also comes with the risk of increased losses.

If you are a beginner i think you should start with Poloniex despite the fact that it's too risky. And i strongly wouldn't recommend to try it.
If you want to be confident you should use resistance levels. 
I read an article provided by Monfex where is written that "One of the basic ways to use support and resistance levels in trading involves buying near support during an uptrend (when the price is generally moving up), and short-selling near resistance during downtrends (when the price is generally falling.) "
What do you guys think about it?

I don't want to complicate things but the usual advice I can give is to learn the basics. The charts, the candles, fundamental analysis and technical analysis. If there are vague explanations, try not to give up by searching all the possible easy explanations.
There is no impossible when you are determined to learn. I've been there before and I only read, read and read then try to go on a trial margin trading. Bitmex offers a practice demo trading just like the actual.

When you margin trade, you trade with leverage.  Which means your deposit to trade, or position, is multiplied by the amount of leverage taken.  Likewise this is reflected in your ROI. 

For example if you had $100 and traded with 100x leverage, your position would become as powerful and as profitable as a $10,000 position. 

If the market went up/down in the right direction by just 1% you would instantly double your ROI, giving you a $100 profit as opposed to only $1 if no leverage was applied (1% of $100 = $1, and 1% of $10,000 = $100).

Using the same $100 example, let’s say the price moved positively by 5%, you would make a $500 profit, as opposed to $5 if no leverage was applied. (5% of $100 = $5, and 5% of $10,000 = $500).

What’s important to note however, is these while these small price movements do offer much greater ROI with high leverage, they are also far more risky.  The greater the leverage the smaller the margin and less room for error.  With 100x leverage your margin is only 1%, which is why the strategy is best utilized on small but near certain price movements.  Here is a really good explainer video detailing how it all works on the PrimeXBT 100x leverage trading platform: https://www.youtube.com/watch?v=NMnX0Z2KKok

High risk = high reward.  The beauty of leverage is however, you can risk much less of your own funds to access much greater rewards.  Just be prepared for the worst, and never deposit more than you can afford to lose.

Leading leverage Providers:
 
Prime XBT - up to 100x on BTC, ETH, EOS, LTC, & XRP
Bitmex - up to 100x on BTC
Huobi - up 10 5x on BTC
Kraken - up to 5x on XBT, ETC, ETH, REP, & XMR
Bitfinex - up to 3.3x on all available assets
Poloniex - 2.5x on BTC

It's just an experience, nothing can be said without experience, It will be able to understand it till a certain stage. It will be necessary to know if you need an Old Trader.

That's not margin trading done right

You don't necessarily have to go for 50x leverage as in that case you would in fact be mostly gambling. Personally, I never use margins greater than 1.1-1.2. In other words, my margin positions are enough collateralized to withstand any sudden price swings (though I had my positions wrongfully liquidated in the past)

Further, the interest you pay is not big provided you don't borrow funds when the market starts to move in earnest. The bottom line is that you can in fact use margin trading without exposing yourself to a lot of risk and you won't be gambling at that (at least, as long as trading itself is not gambling)

Margin trading in my opinion is similar to gambling by rolling dice. You are predicting movements in the market while also stopping yourself from getting liquidated. On top of that you need to repay the loan that you took. It seems attractive but remember that the trading site does make a lot of money from the bitcoin futures trades and they are advertised much more nowadays. If you are willing to take the risk and go for that 50x leverage you are free to do so but without backup of analysis you will fail and even if you do have sound analysis end of the day markets are unpredictable.

There are other ways to trade and make money. Its not that the 100x number should attract you. Anyone gets reminded of ponzis? (no pun intended)

Margin trading can be good way to earn huge profit if we understanding price action, but offcource with more high risk. Before trade on margin trading, we have to choose and understanding about level of leverage first, for crypto pair the ideal of leverage is 3x because crypto has high fluctuacion. And for forex pair we can use 500x because forex has low volatility.

I'm not sure if there are demo accounts for that

You see, margin trading involves a lot of really complicated stuff on both ends of the stick. It is demanding not only on you (in terms of trading expertise) but on the exchange as well (in terms of technical complexity), so it is unlikely that you will be able to find demo accounts offering this type of trading to novice traders

Further, such demo trading can in fact turn harmful in the end, especially if it is a bit different in respect to things like margin calls and similar tricky matters. In other words, you can easily get into wrong habits which may cost you dear when you switch to real trading

Those who offers demo accounts will be a good start for any traders who's new to this type of trading, you can take advantage trying how things works without losing your money, the demo account will help you to predict and assess what influence do the trade will move and by keep doing your practice you will be able to anticipate the movement.

Be careful with margin trading, don't go and do like gambling with the trend, else, go and analyze study everything around to have a successful strategy.

Margin trading is not an easy job we need to get expertise in trading mostly because I heard it from many people that margin trading is one of the most risky one in trading.

There are alot of trading platform that allow to trade crypto with margin, but we have to know which level leverage that they offer and we should be choose that have low leverage and they provide demo account. I prefer to use metatrader platform to trade crypto with margin, because in this platform also available others pair of others asset, so if price of crypto sideaway we can trade on that others asset.

if you want to trade then do it naturally as possible. on the basis that you only have to sell higher than when you bought it. this is a thing that happens in the trading world. the huge profit potential is an attractive attraction, but please be careful that the potential for loss is also very large. make decisions must pay attention to everything, analysis and market situation.

Okay, let me explain a few things

First of all, you should always remember that with margin trading you are basically playing against the "house". And the house in this case is the exchange where you margin trade. You may be playing against an exchange even when you are long with your own coins, but it is always the case with shorts. In practice, it means you should expect things which you normally wouldn't, for example, exchange forcefully liquidating your margin position on some completely arbitrary grounds (like an alleged glitch in the system)

Second, you should understand how the margin system is supposed to work, i.e. when you are likely to have your position liquidated, and here I mean real liquidation, not the one like described above (i.e. wrongful liquidation). If you don't know or understand how it works, you better stay away from margin trading on this exchange until you do. Otherwise, you risk losing your balance due to a technically legitimate margin call. And remember at all times that you are playing against the house with margin trading

Margin trading is too risky for beginner trader, because our balance possible going to zero because of leverage. If you want to try it is better test your skill in demo account, there are alot of trading platform that has product margin trading. To get demo account you can choose broker that offer MetaTrader platform. Metatrader is best platform to trade any asset with margin include crypto , forex, stocks and indices.

Huobi does margin trading
you can take advantage of the training documents shared online also https://huobiglobal.zendesk.com/hc/en-us/articles/360000077872-Margin-Trading-Instruction

register on HuobiMENA.com

telegram: https://t.me/HBMENA

you join there so you can get more details

PrimeXBT (https://primexbt.com) offers up to 100x leverage for: BTC/USD, ETH/USD, XRP/USD, LTC/USD & EOS/USD.  


What makes its conditions favourable over other leverage trading platforms is that it aggregates liquidity from 12 different exchanges with the most volume and trading activity, simultaneously and in real-time.  This means for instant and optimal price-acquisition on the one screen/platform, thus mitigating the risk of slippage.  

The platform also allows for short selling, so you can use leverage to multiply profits in any kind of market condition, be it bullish or bearish.  

Leverage is best utilized to take advantage of small but near certain price movements, as a positive increase or decrease in the market of just 1% instantly doubles your position (with 100x leverage).  Likewise it can also be lost just as quickly, so (as always) never trade with more than you can afford to lose if using such high leverage.   With PrimeXBT you can’t fall into debt with the platform, all you stand to lose is your initial position - before the leverage is applied (causing a margin call).  However you can also implement stop-loss and other advanced orders to prevent this from happening.  

It’s typically advised to start out with lower leverage (2-10x max) until you are confident and highly proficient in conducting technical analysis and reading market trends.