Please, keep in mind that margin trading is not suited for beginners. You should have at least several months of trading experience before attempting to margin trade.
Exactly I am in this favor. No newbie should start margin trading. and like you have said, first make trading experience. Join some demo trading platforms. Try it practically and then get in here. 
Topic: What is margin trading? - page 2. (Read 678 times)
The first thing to understand about the margin calls is related to the nature of the assets you are trading. Many brokers deals in fact with contracts based on underlying asset, as it's the case with derivatives, so you may find out that in fact you are not trading real coins but contracts.
Due to its very nature, which is extremely volatile, cryptos are extremely vulnerable to any leveraged trading strategy. A margin trading account contains often clauses that could ruin you in a matter of days or hours.
Another aspect which is disregarded by most traders, including forex and other types of centralized trading, is that the broker has the possibility to see clients strategies and to manipulate the market in such a manner that finally will wipe out all their money. Don't forget that a broker's job is to make money, which is take your money.
If you want to trade cryptos, you need to make sure you:
- own the asset (having it in your own wallet)
- trade it then on a low fee trading platform
- learn what are the smallest withdraw limits of that exchange
- do the trades
- eventually put your coins into your safe wallet
So my advice is: don't go on margin trading! Even if you are a good trader, the fees and interests are going to eat you alive!
Due to its very nature, which is extremely volatile, cryptos are extremely vulnerable to any leveraged trading strategy. A margin trading account contains often clauses that could ruin you in a matter of days or hours.
Another aspect which is disregarded by most traders, including forex and other types of centralized trading, is that the broker has the possibility to see clients strategies and to manipulate the market in such a manner that finally will wipe out all their money. Don't forget that a broker's job is to make money, which is take your money.
If you want to trade cryptos, you need to make sure you:
- own the asset (having it in your own wallet)
- trade it then on a low fee trading platform
- learn what are the smallest withdraw limits of that exchange
- do the trades
- eventually put your coins into your safe wallet
So my advice is: don't go on margin trading! Even if you are a good trader, the fees and interests are going to eat you alive!
I have been trading on this platform called MavSecure and i found it pretty cool and i also received 50$ as signup bonus. I know it's pretty hard but i have not made any profit or not incurred any loss. I feel with proper analysis i could make some money.
Please, keep in mind that margin trading is not suited for beginners. You should have at least several months of trading experience before attempting to margin trade.
I have been in the cryptocurrency trading world for the past 10 months and couldn't make much profits when the market moved to bear phase. I have been reading about margin trading and have not been able to wrap my head around it? I think i can make some money in the bear phase! Am i correct?
The biggest improvement over regular trading is in margin trading you can trade short as well. This means normally you either buy bitcoin or go back to fiat, with margin trading you can use your money to say "bitcoin will go down" and make profit from that. Everyone talks about how margin trading allows you to leverage your money and just make ton of more than what you have which I agree doesn't exist anywhere else on crypto or normal life outside of margin trading but that is definitely not the biggest improvement.
You can definitely lose your money a lot more quickly if you use that option. However being able to bet on the fact that bitcoin will go down is still an amazing feature even if you just trade on x1 leverage (meaning no leverage at all) that options can still make you money during bear markets.
I have been in the cryptocurrency trading world for the past 10 months and couldn't make much profits when the market moved to bear phase. I have been reading about margin trading and have not been able to wrap my head around it? I think i can make some money in the bear phase! Am i correct?
margin trading is a dangerous area and I advise you not to engage in that area. In my country, there were a lot of suicides because of Margin. Not that they have no knowledge, but margin trading is really a gamble. The whales involved in that market are very much and the ever-changing market is the result of many people making margin trading.
Yes margin trading is give opportunity to make profit by short the price, and margin trading will allow to make profit when bearish market. There are different margin trading, like CFDs and futures contract but all this the same thing, the futures trading use contract or duration for open potition but in CFDs is not. The level of risk is the same and according to how many leverage that we use. Margin trading is more risky so we should be use stop loss for every trade.
It's simply the practice of either borrowing share or money from the broker. There are a couple ways that one can margin trade. Margin trading is buying stocks without having the entire money to do it. The exchange has an institutionalized method of buying stock without having the capital through the futures market. However, margin trading is an act of leveraging your Cryptocurrency existing portfolio on the exchange that supports margin lending to borrow or buy more Cryptocurrencies which you will use to participate in arbitrage trading for bigger profit.
I'm sure you've heard of winner wins all before, the reverse could happen to you in margin trading, a case of loser losses it all.. It's more like taking a loan to trade and which has to be serviced too. It's often advised that as a beginner, you should stay away from margin trading and leave for it for the professional.
Margin trading allow you to trade a bigger amount by taking up a loan. However, your position will be liquidated if your trade fall below the leverage %. Personally, I think margin trading is risky and you should know what you are doing before start to margin trade.
The thing here is that people only talk about them making money using margin trade but hen they lose money no one here about that, margin trade is very risky please for a start don't go more than 5x until you make a bet that go against you and learn from experience, please don't be greedy and I think people have started to mixed short position and margin trading together both are different
Be careful with margin trading in this range for crypto... this is where almost everyone gets rekt... down between 6000-6500...any bad candle or bart candle can hit your stop or liquidate you before you can even blink... if youre gonna go long or short on margin, make sure to enter on the extremities and be patient.. also don't put your stop at obvious places, because whales will find you.
Margin Trade is a tool that allows you to earn money regardless of the market movement. So it is possible to make money with a Bear Market using short positions.
Margin trading and short selling are two completely different things, though I think you can use margin to leverage your short sales. The bottom line (and the simplest answer to OP's question) is that margin IS a loan, and it's a loan given to you by the exchange you're trading on or, in the case of stocks, the broker you're using. If the value of what you purchased (coin, stock, whatever) with the borrowed money and whatever you put in out of your own pocket falls beneath the amount required to pay off the loan, the exchange or broker is going to issue a margin call, which is a request for more collateral. Either that, or they'll just sell whatever you bought and you lose everything.
Using margin is risky, and I've said it a thousand times that new traders should just trade with the funds they have before even contemplating borrowing money to trade. And remember, there's interest you have to pay on the loan as well. Be very careful if you're thinking about margin trading. Lots of investors have gotten their heads handed to them when the market took an unexpected downturn, and there's always the possibility of that happening in crypto.
When crypto price overbought and the price will change to bearish, we should be out from spot trading and we should be short the price in margin trading. Margin trading is mean we can borrow the money from the broker or lender to have more balance to trade, with higher margin or leverage the risk also will higher, so for beginner trader dont use leverage more than 10 times. And chooce trading platform that offer leverage between 1x to 10x so we can chooce it as like as we want.
First of all you dont have to use leverage, but you need to trade on sites that offer it, to take short positions.
if you're not using leverage, then you can just sell your BTC at spot instead of bothering with a margin interface. it's effectively the same thing. the only difference is when shorting, you need to buy back the coins to close the position.
Margin is trading is like for huge loans with very small collateral. As much you can make good money with it should trades go successful, bad trades can also ruin you totally and empty your account to zero. Some guy in a group I belong to lost over 1.8 BTC in a space of 3 days on BitMEX. That was how I got to know about it.
there's a world of difference between trading 100x on bitmex and trading 3x on bitfinex. i never use more than 10x leverage---more than that is too risky given the volatility of crypto. and when i use 10x, it's only with a small portion of my coins.
I have been in the cryptocurrency trading world for the past 10 months and couldn't make much profits when the market moved to bear phase. I have been reading about margin trading and have not been able to wrap my head around it? I think i can make some money in the bear phase! Am i correct?
Margin trading is so risky and it does not fit with someone who is only a beginner in crypto space. You should atleast have an experience about trading and controlling your emotions.
Margin is trading is like for huge loans with very small collateral. As much you can make good money with it should trades go successful, bad trades can also ruin you totally and empty your account to zero. Some guy in a group I belong to lost over 1.8 BTC in a space of 3 days on BitMEX. That was how I got to know about it.
First of all you dont have to use leverage, but you need to trade on sites that offer it, to take short positions. Second, risk (stop loss) only a predifined percentage of deposited amount in a single transaction, for example 2%.
Margin can ruin you, and often destroys your investment.
Do NOT start until you've made a deep research, read, read and read. Test with SMALL amount and leverage - not 100, but 2!
I think they say 90% of casual traders lose their investment (or more).
So, asking this question shows you didn't read enough, aren't understanding, hence you're this majority. Again: DYOR.
Do NOT start until you've made a deep research, read, read and read. Test with SMALL amount and leverage - not 100, but 2!
I think they say 90% of casual traders lose their investment (or more).
So, asking this question shows you didn't read enough, aren't understanding, hence you're this majority. Again: DYOR.
I have been in the cryptocurrency trading world for the past 10 months and couldn't make much profits when the market moved to bear phase. I have been reading about margin trading and have not been able to wrap my head around it? I think i can make some money in the bear phase! Am i correct?
margin = borrowing. in this case, you use the collateral you own (BTC or USD) to secure additional borrowed BTC. you sell that borrowed BTC on the open market in hopes of buying back lower. the difference between your sell price and buyback price = profit.
for example, let's say you're trading on bitfinex and you have 1000 USD collateral. you can move that USD to your margin wallet, then open margin positions with a value of up to 3333.33 USD because the maximum leverage allowed is 3.3x. if you want to profit from declining prices, you'd open a short position.
here's bitfinex's intro to margin trading. it breaks everything down into simple terms: https://support.bitfinex.com/hc/en-us/articles/115004555165-Intro-to-Margin-Trading
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