Topic: What is Margin Trading? (Read 168 times)
Margin Trading is a method of buying shares by borrowing a sum of money from a brokerage company. The loan is secured by collateral in the form of shares in the investor's account. Margin trading functions to facilitate stock traders (hereinafter referred to as traders) with securities company loans, to buy stocks that are potentially good.
Margin trading is the purchase of a contract to buy or sell an asset at some time in the future. The asset does not need to exist at the time the contract is purchased. You need to leave a deposit with the broker to cover the cost of an adverse movement, and this is called the margin. The contract is closed when you purchase another contract in the future to satisfy the terms of the first contract. Any difference in price is your profit ( less brokerage fees ). A margin call is a request from your broker to cover losses when they approach the margin you deposited when the first contract was agreed.
Pyramiding is a method to increase the size of your original position by using the profits to provide a margin for additional contracts. An "uncovered bear" is a speculator who contracts to sell assets that are not owned at the time the contract is opened. A "bear squeeze" is a condition in a rising market where the bears are forced to buy assets at a loss to avoid further losses, and this in turn causes a further increase in the price to force more bears to sell.
Pyramiding is a method to increase the size of your original position by using the profits to provide a margin for additional contracts. An "uncovered bear" is a speculator who contracts to sell assets that are not owned at the time the contract is opened. A "bear squeeze" is a condition in a rising market where the bears are forced to buy assets at a loss to avoid further losses, and this in turn causes a further increase in the price to force more bears to sell.
It is the financial leverage that is the capital of the floor, so you will have more money to trade and bring higher profits. Of course when joining the trade in the margin you will be charged interest.Margin Trading is a trade form is not new friends because it is much harder to play than Exchange Traing This is because when playing Margin you will have to spend more related costs. Most people view Margin Trade as a short-term investment strategy and when the market fluctuates.
In a layman understanding as you asked.
it means trade with loan collected from the broker hoping to payback . the ability to trade short or long market with a borrowed money. that is my understanding of Margin trading.
it means trade with loan collected from the broker hoping to payback . the ability to trade short or long market with a borrowed money. that is my understanding of Margin trading.
Margin trading is simply trading using borrowed money or coins. When you buy coins on margin, you borrow money to pay for the coins. When you sell short, you borrow the coins that you sell. It can be very risky because you must eventually return what you borrowed regardless of whether you make a profit or not.
For the sake of Beginners Like me that want to give TRADING(Forex or crypto) a trial. Can someone assist with a layman understanding of Margin trading.
For me i called it a short and risky trading. who has a clear understanding should assist Please.
Thank you
Margin trading is risky and it is not easy to make a better profit with this method. For me i called it a short and risky trading. who has a clear understanding should assist Please.
Thank you
Anyway, there are many guides here on the forum that I think might help you learn how to do it.
Check this list of threads below.
- https://bitcointalksearch.org/topic/bitmex-leverage-trading-beginners-guide-on-how-to-trade-video-tutorial-2900506
- https://bitcointalksearch.org/topic/beginners-guide-on-how-to-margin-trade-bitfinex-tutorial-1805736
- https://bitcointalksearch.org/topic/guide-how-to-use-leverage-margin-trading-2291799
- https://bitcointalksearch.org/topic/beginners-guide-on-how-to-margin-trade-bitmex-tutorial-4820801
- https://bitcointalksearch.org/topic/beginners-guide-on-how-to-margin-trade-bitmex-tutorial-1819261
For the sake of Beginners Like me that want to give TRADING(Forex or crypto) a trial. Can someone assist with a layman understanding of Margin trading.
For me i called it a short and risky trading. who has a clear understanding should assist Please.
Thank you
For me i called it a short and risky trading. who has a clear understanding should assist Please.
Thank you
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