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.
In a simple way, you borrow an amount of assets from the market that is superior to what you have on your account. And invest according to the direction you believe the market will follow. At Bitmex you can have a margin of 100x. This means that the amount you will invest in a position, short or long, will be equivalent to a 100x the BTC that you have on the wallet.
So you could make a lot of money with a low investment. But it can also leave you with nothing if you bet wrong.
Topic: What is margin trading? - page 3. (Read 657 times)
The issue with margin trading is that it comes with greed and many people basically over leverage themselves and end up getting stopped out.
This is the reason why with stocks you got max leverage at 3x because if they allowed 100x like they do on Bitmex then everybody would be crying to the regulators that they got stop hunted and account was cleared out.
So its a double edge sword. But basically if you got good trading skills you can use it to your own advantage and make more money by borrowing funds (paying some interest) and making more money then you would just longing on 1x.
This is the reason why with stocks you got max leverage at 3x because if they allowed 100x like they do on Bitmex then everybody would be crying to the regulators that they got stop hunted and account was cleared out.
So its a double edge sword. But basically if you got good trading skills you can use it to your own advantage and make more money by borrowing funds (paying some interest) and making more money then you would just longing on 1x.
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?
I think it is difficult to conclude at this moment of what will be the margin trading because of this bearish market which still in effect in which it makes the price value to become more volatile that even the experts day traders are having difficulties about it. Maybe this is possible if the bullish run will start.
Google knows everything...
https://www.investopedia.com/university/margin/
https://economictimes.indiatimes.com/definition/margin-trading
https://www.creditdonkey.com/what-margin-trading.html
https://www.investopedia.com/university/margin/
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Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. Since such use of financial leverage can potentially magnify gains but could also saddle the trader with devastating losses, leverage has the well-deserved reputation of being a double-edged sword.
https://economictimes.indiatimes.com/definition/margin-trading
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In the stock market, margin trading refers to the process whereby individual investors buy more stocks than they can afford to. Margin trading also refers to intraday trading in India and various stock brokers provide this service. Margin trading involves buying and selling of securities in one single session. Over time, various brokerages have relaxed the approach on time duration. The process requires an investor to speculate or guess the stock movement in a particular session. Margin trading is an easy way of making a fast buck. With the advent of electronic stock exchanges, the once specialised field is now accessible to even small traders.
https://www.creditdonkey.com/what-margin-trading.html
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Margin trading is like investing with someone else's money. In this case, it's your broker's money. You can look at it like a loan. But it has stricter requirements. You aren't required to make monthly payments on the money borrowed. However, interest does accrue. The amount you owe continues to grow until you pay the amount off in full.
Firstly you can earn money in any market,be it the bull or the bear, only "glory days" investors actually wait for the bull market to invest..
Real bitcoin investors take advantage of any market to maximize profits,as buying low and selling high would be some profitable business,woudnt it??
Down to your question,margin trading???
To make it as concise and easy to understand as possible...
Margin trading is simply a sort of loan,borrowed by an investor to increase investing power/stake/capital..
Let's say you lack capital and you wanna invest in some project or in the bitcoin,margin trading allows you to take a sort of loan from a broker to increase your initial capital
And with an increase in your investment capital,would come an increase in your profit
Repayment to the broker most times comes with a little interest though
Real bitcoin investors take advantage of any market to maximize profits,as buying low and selling high would be some profitable business,woudnt it??
Down to your question,margin trading???
To make it as concise and easy to understand as possible...
Margin trading is simply a sort of loan,borrowed by an investor to increase investing power/stake/capital..
Let's say you lack capital and you wanna invest in some project or in the bitcoin,margin trading allows you to take a sort of loan from a broker to increase your initial capital
And with an increase in your investment capital,would come an increase in your profit
Repayment to the broker most times comes with a little interest though
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?
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