Margin Trading From a to Z: A Complete Guide to Borrowing


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Margin trading: from A to Z

Margin trading: from A to Z
🤗 Hello, dear community. In this post, we will tell you in detail about marginal crypto trading and its features.
💸 Marginal crypto trading differs from traditional operations in an extremely significant feature — a speculator uses personal as well as borrowed funds to earn more. The trader borrows the required amount of money from the exchange itself. A pledge is its existing assets on the trade balance.
⚙️ Using borrowed capital, the speculator gets the opportunity to open orders with a large amount of virtual currencies. This directly determines the amount of potential profit.
🔑 Sometimes a trader wants to quickly acquire crypto coins in order to subsequently sell them at a higher price, but he doesn’t have enough money. For example, on Cryptology trading platform, a trader can take a loan. The trading platform regulates specific leverage for different conditions. In case of a real rise in price of the selected cryptocurrency purchased for the available amount, the trader will receive a profit from which the borrowed funds will be deducted plus a small commission. However, the total income of the speculator may be as a result more than 20 times.
🖇 For example, a trader wants to make a buy order for Bitcoin. On a traditional exchange, the buy order for let’s say 10 BTC would be for $35,000 ($3,500 each). However, using 100x leverage gives a trader an opportunity to buy this order for only 1% of the $35,000 position – $350.
🧮 Thus, if the price of Bitcoin rises by 10% and the trader sells 10 Bitcoin, as a result, he significantly multiplies his profit, spending much less capital thanks to 1:100 leverage ($350 vs $35,000)!
📌 𝗥𝗲𝗺𝗲𝗺𝗯𝗲𝗿! The amount of commission fees for providing margin and leverage itself is set individually on different exchanges. Everything is due to the features of functioning and established policies! For example, the Cryptology exchange has rather low fees: 0,075%.
🔍 In margin trading, it is especially important to know about the maximum limit for leaving orders in total minus. When a loss value exceeds the collateral amount, automatic closure of transactions begins. In such a situation a trader can lose his entire deposit.
🔅 As soon as the amount of losses becomes critical, but the value of the collateral has not yet reached, the system from the crypto-exchange sends a special warning called margin call. So, the trader needs to quickly replenish the deposit so that the exchange does not begin to close active orders, selling the purchased coins.
♻️ Competent traders, using leverage, are able to have a steady profit in virtually any financial market, especially cryptocurrency exchanges. This tool allows you to increase capital without increasing the trading deposit. However, margin trading is characterized by insidious quality – extreme risk. This aspect is relevant especially for novice speculators or for traders who illiterately control risks and trade negligently in situations of price instability.
submitted by Cryptology_Exchange to cryptologyexch [link] [comments]

Do You Hold Any Long Term Investments In Your Trading Account?

Do you keep all of your funds in your trading account in cash? Or do you hold a certain percentage of it in securities?
I most of my funds in securities and then just use the margin trading power to trade with. Thoughts?
submitted by camsjourneytowealth to Daytrading [link] [comments]

binance setting new traps on spot margin settings

Something went wrong with binance interface on margin (not that it doesn't happen regularly and you don't give a toss - as a company /no responsibility/)....

I just started using margin, on spot market only for now (don't understand futures yet), for last 2+weeks...

I usually was:

- transferring base market coin (here BTC), doing longs (though I tried shorts with borrowing the pair coin)

- borrowing BTC before the trade

- buying pair coin on 'normal' setting (no 'borrow', no 'repay') of the whole or most of the available now BTC amount (mine and borrowed)

- and selling either on 'limit', market or OCO sell, with repay setting, and everything was going smoothly...


a) even if I do buy on 'normal' option setting, if I do 100% (all what I should be able to buy on 'normal' out of already available bitcoin) it forces me (even though I Did Not Choose 'borrow' option on the trade, so it shouldn't) (though it asks before execution - a pop up comes ut that such and such amount will be bout out of your means in posession, and such will be bought on 'borrow' basis) to consider borrowing
(so it doesn't buy anymore 100% of what bitcoin I have already available, in normal mode; which it originally should and it did; it asks me to use borrow to the maximum - if I haven't used full leverage possible on transferred base BTC coin)

b) it doesn't 'repay' anymore automatically with sell 'repay' option.... (I have to visit myself and do it manually each time)

c) with sell option it doesn't choose maximum available on the trade /bought earlie (in possession) pair currency to sell at 100% chosen level, but, the same as with buy, again, on sell
100% setting, it tries to add more of the pair coin (again with a pop up notification) on by 'borrowing' it; and putting you in debt on the pair coin of the trade which you've just sold on long... !(if you won't watch out and press things/jump too quickly) - even you're on 'repay' NOT 'borrow' option for sale!!!! on that coin tries to force you to borrow what's possible of the pair currency and sell it immediately - so to run into debt onto that currency and having to buy it back)
(so one has to now check how much of the pair currency he/she has and put the amount manually)

It makes most of your 'automatic'/"handy" settings on spot margin trading going to shit and become just another level of trap (among many other existing - purposefully I believe - in the cryptocurrency world) for a trader - especially a beginner... (but anyone else also)

I'm 1500% sure (out of experience by now of how this whole shady cryptocurrency world works for small, and what you do do for big) you set up this change as a trap... though you'll have 1000 explanations (80% of them not making sense) ready by now...
submitted by Elavias to binance [link] [comments]

Margin Activities: Zero Interest for Borrowing & 4,067 USDT Giveaway for Trading Competition

Margin Activities: Zero Interest for Borrowing & 4,067 USDT Giveaway for Trading Competition
0 interest to borrow ADA, ETH, ETC, BSV! 🎁🎁🎁
Join KuCoin Margin trading competition to win 4067 USDT🎉🎉🎉
👉Click here to join now >>
👉 Details >>
🎊🎊🎊Random users will get VIP level upgrading!
submitted by kucoin_official to kucoin [link] [comments]

Margin trading exchange development

Margin trading exchange development
If you want to commence your trade business with minimal investment and pocket huge profits, reach out to CES and get margin trading exchange development services from our experts. We integrate the most advanced technology and top trending features into the platform, which helps you conduct transactions at ease, but with minimal risks involved. We offer the best margin trading strategies to our customers for improving their success rates.
submitted by AnnaLisbeth to u/AnnaLisbeth [link] [comments]

Why Start Margin Trading In Cryptocurrency Markets?

The cryptocurrency market has been volatile from the very beginning, which is why more and more innovations have been made to continuing profiting from it when its under attack by the bear market. One way to earn from cryptocurrency is by margin trading. For traders with a limited amount of crypto coins or tokens, there is the option of margin trading to add leverage to the investment. This increases the amount of invested without having to hold the assets. It is important to mention that margin trading is an emerging platform on different crypto projects.
One exchange who recently added margin trading in their platform is KuCoin. This platform initially supported 12 different assets, which provided a way to trade with up to 10x leverage. In addition to the margin trading features, this also marks the opening of a lending platform for users who wish to lend their tokens to others for margin trading. Through selling and lending crypto, traders can short their positions to get profit. Margin trading, compared to traditional trading, has the potential for higher profit but, due to price fluctuations and high liquidity, also faces higher transaction risk. KuCoin Margin Trading is in its early stage but it's expected to go boom with the emerging market of margin trading.
Margin trading can be advantageous in cases where the investor anticipates earning a higher rate of return on the investment than what an individual is paying in interest on the loan. The most obvious advantage of margin trading is the fact that it can result in larger profits due to the greater relative value of the trading positions. Other than that, margin trading can be useful for diversification, as traders can open several positions with relatively small amounts of investment capital. With this concept, more traders are also trying this kind of platform because of the profit that it can make than on spot trading.
submitted by HugeMorr to CryptoCurrencyTrading [link] [comments]

What is spot gold leveraged trading

The so-called "spot gold leverage" refers to the customer buying a margin contract (gold call dollar put option or gold put dollar) that expires within one month after paying a certain amount of option premium to the bank according to his judgment on future changes in the international gold price. Call option), on the expiry date of the option, the customer has the right to buy or sell paper gold of the specified face value from the Bank at the agreed price.
1. How to understand the spot gold leveraged trading?
Spot gold leveraged trading is a contractual spot gold trading that uses the principle of leverage. Simply put, it is margin trading.
According to the real-time market conditions of the international gold market, two-way transactions in the form of leveraged investment through two-way transactions via the Internet. Flexible two-way trading means that investors can either buy gold up or down, so no matter how the price of gold moves, investors There is always a chance of profit. Network trading platform is convenient, fast and accurate.
Click, add your teacher's whatsapp: 917406391096, help you open an account, and teach you one-on-one how to make money online.
2. Features of spot gold leveraged trading
Spot gold leveraged trading means magnifying the funds invested.
3. Risk of spot gold leveraged trading
As for whether there is any risk, as an investor, I believe many people understand that there is risk in investment, but the risk control right lies in the investor's own hands, that is, the risk is controlled according to the investor's own wishes. Important characteristics of spot gold trading.
Lefey gold:Therefore, investors should set the amount of losses they can bear according to the online trading platform. When the judgment is wrong, the system will automatically close the position at the set amount to strictly control the risk. If a lot of 100,000 is invested, but the loss that can be controlled is less than 1,000 yuan, or the percentage of the principal, there is no problem of capital seizure, and it is easy to control the loss.
submitted by Xboxend to u/Xboxend [link] [comments]

What is Margin Trading? And why should you avoid it?

As an investor, with the expectation of a future financial gain, you choose to allocate capital. If engaging in crypto-margin trading is your first time, understanding the things involved in it is vital. Margin trading is a risky and challenging route, but you also get a chance to make big money. Here’s a margin trading guide for you to make cryptocurrency trading profitable, learn what is margin trading, and to remember the risks associated with it.

What is buying on Margin?

To define marginal trading, it requires money from a lender to purchase stock. In other words, it’s a borrowing you can get from a customer buying and selling goods or property. The strange thing about margin trading is that you can buy more shares than you would usually be able to buy.
submitted by zee21here to Earninghub [link] [comments]

Users Can Now Switch Between New And Old Trading Interfaces

Users Can Now Switch Between New And Old Trading Interfaces
KuCoin is striving to provide a user-friendly trading experience to all KuCoin users. Due to feedback from users on the new trading interface released on October 15, we have now made available a switch button that enables users to return to the previous trading interface. Meanwhile, we’ll continue developing an easy to use and customizable trading interface to enhance the experience. Along with the update, KuCoin will officially debut the margin trading service to provide diversified trading experiences to all users. Please stay tuned. Thank you for your attention.
submitted by kucoin_official to kucoin [link] [comments]

KuCoin Will Launch Margin Trading Service

KuCoin Will Launch Margin Trading Service
KuCoin will release an all-new service on October 31, 2019 (UTC+8): Margin Trading.
Via the Margin Trading service, users will be able to borrow crypto valued multiplied original principal for more transaction possibilities. By selling the lending crypto, users can short their positions to get profit. Margin trading, compared to traditional trading, has the potential for higher profit but, due to price fluctuations and high liquidity, also faces higher transaction risk.
*Users will be able to enjoy a 20% discount in KCS when using it to pay the transaction fees generated in margin trading.
Read more about this news on:
submitted by kucoin_official to kucoin [link] [comments]

KuCoin's Response to Trading Volume/KuCoin Bonus Feedback

In response to feedback regarding the recent mismatches between the growth rate of the platform’s trading volume and bonus issued to KCS holders, the major causes are as follows:
  1. The average trading fee rate per account dropped as we have seen an increase in premium account holders that are offered lower trading fee rate according to their contribution of high trading volume and large amount of KCS holdings;
  2. We have recruited a certain amount of professional market makers, aiming to provide adequate liquidity to the derivatives trading platform (KuMEX) and the spot margin trading platform to be launched soon.
Starting July 1st till launching a new mechanism of KCS in Q3, KuCoin will conduct weekly buyback equaling the total amount of Bonus issued within the week, and burn the KCS collected in the buyback.
submitted by kucoinofficial to kucoin [link] [comments]

Ethereum's future is bright, the DApps are coming!

The DApps are coming, the DApps are coming!

Chin up boys and girls – the DApps (Decentralized Apps) are finally coming. Utility, not speculation/manipulation/shilling etc., is what, in the end, will give/justify the value of blockchains.
Of the top 100 tokens, 91 of them are on the Ethereum blockchain (ERC-20). The most valuable non-Ethereum tokens by market cap are USDT (4) and GAS (25). Eventually, ICX (6), VeChain (3) and EOS (1) and several others will be migrating to their own blockchains. Still, this leaves Ethereum with an overwhelming market dominance for tokens (aka DApps) and Ethereum has been clearly recognized as the blockchain to launch ICOs/DApps.
We have already seen several DApps successfully launch on mainnet including CrytptoKitties, Crypto Sportz, Edgeless, Etherbots, Ethercraft, Etheremon, Etheroll, ETHLend, Forkdelta (RIP Etherdelta), 0xBitcoin and Ethlance among others. Check out a whole list on DappRadar and track the progress of some lesser known, smaller projects on StateoftheDApps (Note: I cannot vouch for all of these DApps. There have been and always will be scammers in the crypto space. Please, always do your own research!)
For the rest of March + Q2 (April - June) we are going see the biggest implementation of DApps on the Ethereum mainnet to date. Below I’ve laid out, in alphabetical order and in varying detail, what’s happening between now and the end of Q2 of this year. (I’ve also added some info, where especially relevant, of big stuff coming after Q2). I hope any biases I may have do not come through too much in the writing.
To hammer home on utility once more: One year ago today, the daily transaction count was at 57,000. Yesterday, the network confirmed over 752,000 transactions (a 13x increase) (And remember, ATH in January was 1.349 million txns!) [Source]

On to the DApps:

This project can take a little time to understand, so here's a thorough ELIM5 walkthrough.
The 0x Protocol
Also, an informative article about some of the differences between the various decentralized exchange protocols here.
Some general Ethereum news to be excited about:
  • Vitalik recently hinted, in a since deleted tweet, that the sharding testnet will be coming online in the near future (I think Q2 isn’t too early a guess).
    • What is sharding? Sharding is where the entire state of the network is split into a bunch of partitions called shards that contain their own independent piece of state and transaction history. In this system, certain nodes would process transactions only for certain shards, allowing the throughput of transactions processed in total across all shards to be much higher than having a single shard do all the work as the mainchain does now. [Source]
  • Alpha Casper FFG testnet has been successfully running since Dec. 31, 2017.
    • What is Casper? Casper FFG aka Vitalik’s Casper is a hybrid POW/POS consensus mechanism. This is the version of Casper that is going to be implemented first. In a Proof of Stake system, validators stake a portion of their Ethers and start validating blocks. Meaning, when they discover a block which they think can be added to the chain, they will validate it by placing a bet on it. [Source]
(To stay up-to-date on Ethereum research development, check out
  • The Ethereum Community Conference (EthCC) is March 8-10 in Paris. Talks will focus around “scalability, anonymity, development tools, governance compliance” among other topics.
    • Speakers include representatives from the Ethereum Foundation, Ledger, Metamask, Shapeshift, Oraclize, Uport, Web3Foundation, Melonport, ConsenSys, JP Morgan, Coinbase – Toshi, Parity, SpankChain, FunFair, Aragon, AirSwap, EEA, IExec, Cosmos, OmiseGO, Circle, Gnosis, among others.
    • UPDATE: EthCC was a resounding success! If you missed it or want to re-watch any of the talks, check out this handy thread of videos, painstakingly culled and timestamped by u/alsomahler.
  • The Ethereum Developer Conference (EDCON) is May 3-5 in Toronto. This will be the biggest ETH dev conference since DEVCON 3 last November. The agenda is still being worked out, but speakers include representatives from the Ethereum Foundation, Polkadot, Parity, Plasma, OmiseGO, Cosmos, Tendermint, Giveth, Maker, Gnosis, and many others.
  • The Enterprise Ethereum Foundation (EEF) just keeps growing and growing and growing.

More, because I just can’t stop:

  • MetaMask recently passed 1 million installs!
  • 5.6 billion requests per day for (Decentralized web3 infrastructure)
  • 280,000 downloads of TruffleSuit (ETH development framework)
  • ConsenSys has grown to over 600 employees in six major offices located around the world. I personally think ConsenSys is important (and awesome) because they are huge Ethereum evangelists and provide (in)valuable resources to help bring DApps come to life!
    • From their website: “The ConsenSys “hub” coordinates, incubates, accelerates and spawns “spoke” ventures through development, resource sharing, acquisitions, investments and the formation of joint ventures. These spokes benefit from foundational components built by ConsenSys that enable new services and business models to be built on the blockchain.”
    • Several of the projects I listed above are ConSensys formations including AirSwap and MetaMask.
Thanks for reading this far! Hopefully it wasn’t too exhausting of a read.
I am certain I have forgotten some DApps, so please feel free to comment/PM any and all suggestions/corrections to make this list more informative/inclusive/accurate and I will update it.
submitted by GetYourAssToPluto to ethtrader [link] [comments]

[] Time for Short! Be a winner and share 20,000USDT! Margin Trading Contest is Upcoming! Time for short!
Upset with the bearish market? Don't be! Time to earn more in such situation! is launching the margin trading contest to find the short trading talents!
Top 20 users by margin trading return will be eligible to share 20,000 USDT prize pool.
The highest reward is up to 10,000USDT!!

Don't worry if you are not good at margin trading!
Bet on the user you think with the highest next-day return and share BTMX Reward Pool if correct!

Not enough?
Invite friends and both can get point card reward which worth 5USDT!

Signup date from 8:00 pm EDT, Oct 7th to 8:00 pm EDT, Oct 9th;
Contest starts at 8:00 pm EDT, Oct 9th and ends at 8:00 pm EDT, Oct 15th;

20,000USDT is waiting for you, Don't miss it!
for more details, please check here.
submitted by foncryptofever to Crypto_General [link] [comments]

[] Time for Short! Be a winner and share 20,000USDT!

[] Time for Short! Be a winner and share 20,000USDT! Margin Trading Contest is Upcoming! Time for short!
Upset with the bearish market? Don't be! Time to earn more in such situation! is launching the margin trading contest to find the short trading talents!
Top 20 users by margin trading return will be eligible to share 20,000 USDT prize pool. The highest reward is up to 10,000USDT!!

Don't worry if you are not good at margin trading!
Bet on the user you think with the highest next-day return and share BTMX Reward Pool if correct!

Not enough?
Invite friends and both can get point card reward which worth 5USDT!

Signup date from 8:00 pm EDT, Oct 7th to 8:00 pm EDT, Oct 9th;
Contest starts at 8:00 pm EDT, Oct 9th and ends at 8:00 pm EDT, Oct 15th;

20,000USDT is waiting for you, Don't miss it!

for more details, please check here.
submitted by foncryptofever to airdrops [link] [comments]

Ultrablock-Maximize Earnings With Margin Trading

Use the margin trading feature to borrow funds from the platform and maximize your profits. Ultrablock provides exclusive margin trading features that enable you to multiply your earnings. Register on Ultrablock today and enjoy trading.
submitted by Ultrablockio to u/Ultrablockio [link] [comments]

Margin Trading Simplified

Use the margin trading feature to borrow funds from the platform and maximize your profits. Ultrablock provides exclusive margin trading features that enable you to multiply your earnings. Register on Ultrablocktoday and enjoy trading.
submitted by Ultrablockio to u/Ultrablockio [link] [comments]

Beginner's Guide to Trading Crypto. Part 3

Beginner's Guide to Trading Crypto. Part 3

Running The Margin Blade – The Oblivion Or High Heaven Of Trading

Risk is the inherent factor of any type of trade. Fortunes have been made and lost on trade in stocks, bonds, commodities, cryptocurrencies and even empty promises. The reason for such tribulations in trading is the fact that traders are obliged by a set of rules established on almost every trading platform known to man, to put forward a certain amount of funds to prove that they are capable of buying a certain asset. Far too often, the players of the trading market do not have enough collateral to buy an asset that they wish to trade. This is where a strategy known as margin trading comes into play.
For any aspiring, budding, young trader seeking to make a fortune by trading stocks or cryptocurrencies, the term margin trading may well be scary, like most other slang expressions and terms inhabiting trading platforms. But once examined under the prism of common sense and provided a good explanation, margin trading turns out to be nothing more than a common, household name.

Edging Up On The Margin

Margin trading can be simply described as taking a loan. In trading practice, things are a bit more complicated, but the essence remains largely parallel to that of its ordinary counterpart that may be carried out even between friends. First and foremost, given the high risk that it bears, margin trading can only be carried out via a special account called a margin account. Since margin accounts can be opened only by brokers, and it is brokers who provide the margin, or loan, the broker will require the client’s signature to open an account and an amount of no less than $2,000 by law on regulated classical exchanges. Such deposits are known as minimum margins and allow the trader to purchase up to 50% of the initial price of the asset they wish on margin, or using the loan, in other words.
Just like every other loan, margins can be kept for as long as the trader wishes, so long as they eventually repay the amount they borrowed in full. But restrictions also exist in the form of something called a maintenance margin. This is the bare minimum account balance that traders must have on their accounts. That amount is for the broker’s security to make sure they get repaid. If that minimum falls below a set level, the broker will have every right to force the trader to top up the balance or even sell the assets purchased on margin to repay their debts. Such a situation is known as a margin call.
Naturally, not everything can be bought on margin. It is common practice for brokers not to give out margins on over-the-counter Bulletin Board (OTCBB) securities, penny stocks, or initial public offering stocks (IPOs), since the risk they carry and the volatility inherent to them is high. Individual brokers have the right to set their own rules on what to issue margins for and what not to.
Given the multitude of nuances involved in margin trading, their statistics are being tracked in real time. The New York Stock Exchange (NYSE) is responsible for tracking the total amount of margin debt in the world. Such statistics are necessary because of the high risk that margin trading bears and the influence it may have on the global economy at large. If the amount of margin trading exceeds acceptable levels, the exchanges can put a stop to trading to reduce volatility.
More important in margin trading is the human factor, since many traders overestimate their financial capabilities regularly and incur losses. As a result, only very advanced and highly skilled traders partake in margin trading. An important factor in deciding whether to trade on margin is the availability of sufficient collateral that would allow the trader to cover their debts and, preferably, avoid total financial ruin, misery and despair.
Exchanges that support margin trading include Binance, Bittrex, BitMex, OKCoin and others. The leverage and margin differences are very stark, as every platform considers its own levels of margin trading and decides its own amount of trust in its participants. On Binance, for instance, the amount of margin allowed to a trader is determined by their Tier level. The higher the Tier, the higher the margin allowed, but it will never exceed 2x of the amount in your margin wallet.
To illustrate the destructive and return-generating power of margin trading, it is best to take an example. For instance, a trader decides to deposit $10,000 on a margin account that he has opened with a broker. The trader places 50% of the purchase price of the asset he wishes to buy. By doing so, the trader has generated an additional $10,000 as a loan, or margin, and now has $20,000 of purchasing power to conduct his trading activities.
If this trader decides to buy $5,000 worth of some asset or stock, $15,000 will remain on his account and will still be considered as remaining purchasing power. The trader still has enough money to cover his transactions and to repay the broker. If the trader decides to buy stocks for $15,000, then he will be tapping $5,000 from his margin, meaning he will be in debt to the broker in the amount of $5,000.
If the trader’s asset suddenly jumped in price, then he has made money and can reap the returns. But if we suddenly consider the case of the asset’s price dropping from $15,000 to $5,000 for some catastrophic reason, our trader is now in serious trouble, since he is now indebted to the broker for $10,000, and it is his problem how to cover such losses.

The Pros And Cons Of Margin Trading

After having read everything said above, the reader will have probably already formed a sufficiently realistic picture of the risks involved in margin trading.
The main advantage that margin trading grants to all who resort to it is the provision of liquidity that traders may not have to engage in trade with assets of interest to them at that moment. The availability of liquidity allows traders to buy assets and trade, just like any other loan in the world would allow the borrower to do what they please with the money. Margin trading allows for generating returns without being hindered by the lack of available liquidity. The returns involved may be very high, all depending on the trader’s skills, strategy, approach, caution and market conditions.
The risks, however, are also just as high. The main risk resides in the potential price drop of the asset that was bought on margin. If the asset loses its value, the trader will be indebted and will suffer losses, since they may not have enough funds or collateral to pay for the margin. Risk is inherent in debts, especially when these debts are being used to purchase assets.
With cryptocurrencies the risk factor is exacerbated by their inherent volatility. True, volatility can be bipolar and can generate returns, but the risk remains.
For instance, in crypto trading, if a trader has decided to buy Ether with a margin of 50%, then there is a chance of buying the asset and waiting for returns if the news around the cryptocurrency is positive and the price has been demonstrating green dynamics. If the trader bought $1,000 worth of Ether with a %50 leverage at $100 per coin, and the price rose by 2%, then the trader is in for a positive return of 2% and has enough leverage to pay off the broker. But as the market is quite volatile and the price is subject to swings, we can consider that the price suddenly fell by 12%, which means that the trader is now 12% in debt to the broker and will have to pay from his own pocket.
If we are to bluntly look at margin trading in a nutshell and consider the benefits that it brings to traders, then we have to consider the pros and cons on a weighted balance, since both are equal. The availability of liquidity cannot come without risks, but these are risks that every individual trader has to weigh depending on their financial standing, strategy, soundness of investments and other factors that will eventually lead to either returns or losses.
The fear of volatility has not only been keeping institutional investors and traders from partaking in crypto trade, but is also a limiting factor for millions of people from engaging in trade in general. The availability of capital determines much when deciding to engage in trade with assets that are unstable. But there is the possibility of trading on some platforms and exchanges that may not require margin trading in principle. The reason is not the lack of risk, but rather the availability of instruments that do not require the need to resort to margins.

Looking Back

After having read the brief explanation on margin trading with its main ins and outs, the reader will have probably understood that some terms on the trading market are not as scary as they are made out to be. In fact, as with most financial terms, operations that can be conducted even between friends or are common practice in banks, can migrate to the trading market and acquire new aspects, applications or monikers.
The main factors underlying margin trading are those of opportunity and risk. Both walk hand in hand down the path of market charts and graphs. The opportunity of buying assets of interest using loans is what margins are all about. They give liquidity under obligations to pay it back. The downside is the factor of uncertainty, as the asset purchased on margin can fall in price and turn the expectation of returns into losses, thus forcing the trader to pay back the margin from his own pocket.
Whatever strategy the trader resorts to on the market, the tools needed will be there on the MoonTrader platform and allow for ample opportunities of generating returns, when combined with sound approaches. And whatever the approach, we hope it’s profitable for our users!
Check us out at
Check us out on:

Originally posted on our blog.
submitted by gylcadaniel to Moontrader_official [link] [comments]

ParamountDax is Working on Adding Margin Trading

ParamountDax is Working on Adding Margin Trading

Dear Community,
Since Margin Trading is currently only available in a selected number of platforms, we are actively working on new features for the ParamountDax platform to provide a Margin Trading for our users in order to increase their profit.
Margin trading allows a trader the option of trading in volumes more significant than the principal amount a trader holds.
Margin trading can be used to open both long and short positions. A long position reflects an assumption that the price of the asset will go up, while a short position reflects the opposite. While the margin position is open, the trader’s assets act as collateral for the borrowed funds. To understand margin trading, you’ll first need to understand the concept of leverage.
What are Margin and leverage?
Margin and leverage are extremely important concepts to any trader actively participating in the market. The underlying principles and how they’re applied are the same for Open Finance as they are in traditional markets.
Margin is the collateral amount being deposited by the trader
Leverage increases the potential reward for a trader but also increases the risk.

How to margin trade — going long vs. going short

There are two options when opening a margin trade:
Going long: also referred to as opening or entering a long position, this is when you buy a cryptocurrency in the belief that its price will go up. The aim is to use leverage to benefit from increased gains if the price rises as you predict.
Going short: also referred to as opening or entering a short position, this involves selling a cryptocurrency to bet that its price will go down. The aim is to then purchase that crypto back once its price has dropped and profit from the spread.
Before we go into the advantages, it is essential to say that margin trading carries a very high risk, and it can lead to significant losses if not done correctly.
In case you don’t know how margin and leverage works, the margin is the amount of capital that is invested into a trade in proportion to the total position held by utilizing leverage. For example, if a trader took 100x, or 1:100 leverage with an account balance of $100, their position would increase to $10,000 — thus the margin is just 1%. So any profit made is also multiplied by 100, which is profoundly rewarding; particularly when you consider that only $100 of the trader’s funds was risked to access such a profitable trade.
- Large profits due to the greater relative value of the trading positions
- Several positions with relatively small amounts of investment capital
- Investors can easily take up trading opportunities as they arise
- Opportunities may arise without notice, in this way, traders can obtain increased profits through margin trading compared to spot trading.
Margin trading can be very rewarding when done right. However, like any trading practices, there are risks associated with it that may lead to massive losses.
Summary, Margin trading is a great way to boost purchasing power, especially if you are an experienced trader. However, it comes with significant risks, particularly if used incorrectly
Be on the lookout for more tips on Margin Trading in the future.
We hope you will enjoy this exciting part of the cryptocurrency world. And if you have any questions, feel free to reach out to us any time.
Good luck! And see you soon!
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submitted by ParamountDax to ParamountDax [link] [comments]

Margin trading question

I just got the update for margin trading. Now is it just me or does the way they have margin trading set up make no sense ? I'll admit I'm a rookie at best when it comes to margin trading. Is the whole idea of margin trading not to borrow a stock/coin at a set price then if it goes up you make money and if it goes down below your equity it liquidates and you lose everything. But the system they seem to have is I borrow 1 BTC for 1 BTC. Now price goes up or down doesn't matter I still owe 1 BTC + interest.
Sorry for the stupid question I'm having a hard time understanding this.
submitted by regna437 to BinanceExchange [link] [comments]

Binance Review Reddit - Is it safe to trade on the Binance exchange?

Short summary of the full Binance review on Reddit:
Binance is the cheapest platform to buy to sell, as long as you use Binance coin.
Sign up to Binance here.
About the Binance Exchange
Binance was started in 2017 by the Chinese Changpeng Zhao, popularly called "CZ," which grew up in Canada. Binance was originally started in 2017 in China, but moved to Hong Kong, and later to Japan the same year due to China's cryptographic trade ban. After Japan began to make things difficult for the crypto-currency industry, Binance moved again. Now the crypto exchange's new base in Malta, where the authorities have introduced clearer and more cryptic-friendly laws.
Binance has, in an impressive short time, managed to become the world's largest crypto exchange measured in transaction volume. Every day, values ​​equivalent to over $ 700 million is exchanged at the Binance exchange. This may to some extent have a correlation with the price level (fees for trading and deposits/withdrawals). Binance is one of the very cheapest places to trade with cryptocurrency, as they only charge a 0.1% transaction fee that applies to all transactions, but even with such a small profit per transaction, they do not suffer for that reason. On the contrary, it turns out that Binance has bypassed Deutsche Bank in profit, and is approaching the level of Nasdaq.
Security and reputation
Binance has a good reputation for safety. It is one of the few cryptocurrency exchanges that have never been hacked, despite the fact that they record about a dozen attempts each day, which is perhaps to be expected when considering the enormous values ​​that exist within the crypto exchange.
There are also several examples that Binance has stopped theft and targeting of individual users, using their AI based security systems. This suggests that they definitely take safety seriously and operate according to the precautionary principle. It also shows that they use the best and most advanced technology to secure their users.
There are other areas where Binance has not been as successful in its reputation. This applies, for example, to the introduction of new cryptocurrencies at Binance. There have been a lot of complaints about their treatment of cryptocurrencies trying to list themselves on the crypto exchange. One of these comes from Blocknet, who blames Binance for fishing for information for use in Binance's own competing project. Another example is from Digibyte who complains about what they see as extortion from Binance's side.
Binance's response to the various accusations is that people often tend to get angry and blame Binance for inappropriate behavior when their cryptocurrencies are denied access to the Binance crypto exchange. Among those who buy and sell cryptocurrency at Binance Stock Exchange, few complainants.
Generally speaking, Binance is known for being a professionally run, secure, well-functioning and inexpensive crypto exchange with high liquidity. All of these are good reasons why millions of the most professional crypto-currency investors choose to trade through Binance. Ultimately, it is up to each one to consider how much one is ready to sacrifice in extra fees in exchange for more transparency and better communication.
Ease of use
From the start, it has not been possible to buy cryptocurrency for fiat currency at Binance, which has made it difficult for new traders to get started. Among other things, this has meant that fiat transactions require many approvals, and in many places the legislation has not been fully developed for this type of transaction. Binance long dealt with many of these issues by merely dealing with cryptocurrency that had long been unregulated. Binance has already opened the bank account and office in Malta where the more stable conditions of the crypto industry make it easier to start trading also in fiat currency. Binance has now also made it possible to buy cryptocurrencies for fiat currency using credit cards. This is done via a payment solution called Simplex.To make it easy for its users, Binance has also introduced Trust Wallet as part of the service. Trust Wallet was purchased by Binance in 2017, and now this is being further developed as part of the Binance platform. Currently, the wallet accepts 14 block chains, but more will be introduced eventually. To make it easier for beginners to use Binance, they have created two versions of the dashboard. A simpler version and a more advanced, but compared to, for example, Coinbase's simplified user interface, both the simple and the advanced version of Binance are relatively advanced. This makes Binance often seen as a platform that is adapted to more professional and experienced traders.
Supported Currencies
Binance is one of the crypto exchanges that offer many different cryptocurrencies. A total of 155 cryptocurrencies are available at Binance throughout the 482 trading pairs. At the same time, Binance is not a crypto exchange that focuses on supporting all the cryptocurrencies that exist in the market. Binance considers each cryptocurrency according to its own internal criteria and chooses to list the currencies that they consider to be serious and have sustainable teams and technology. If the situation changes and a cryptocurrency turns out not to meet these criteria anymore, it will be removed from Binance. Binance has decided that this is a process that both protects users of Binance against fraud, while improving the reputation of Binance by ensuring that more investors have positive experiences when investing in cryptocurrencies on the platform. After Binance has now moved to Malta where the rules are more customized with cryptocurrency trading, Binance will soon be offering fiat crypto trading pairs.
Users and Liquidity
Binance has a very large user base with 313,000 daily users and USD 1.5 billion in daily transactions. This means that there is great liquidity at Binance. Although Binance does not have as many daily users as coinbase, the total volume is greater at Binance. This is due to the fact that Binance's average transaction size is $ 2137 compared to just $ 189 on Coinbase. This probably comes from Binance being considered a crypto exchange for advanced crypto investors, while Coinbase is a more beginner-friendly exchange.
Gearing and margin trading
Currently, Binance does not offer gear and margin trading. According to Binance's white paper, gearing will eventually become available at Binance, but so far this has not been prioritized.
Exactly when this is going to be introduced is yet to be published. According to CZ, Binance does not have annual goals that they work towards. They have a 10 year strategic plan that they use as a guide for their work, and then they have short-term goals that they work with that have a time horizon from a couple of weeks to a couple of months.
Therefore, it is not certain whether this is, for example, a service that will be introduced this year or in five years time. It looks like Binance is currently focusing on safety, stability at high demand, and the development of its new decentralized crypto exchange.

Ready to join one of the most popular cryptocurrency exchanges? Join Binance here!
submitted by Marlie3 to binanceexchangereview [link] [comments]

SwapZilla — is a unique infrastructure solution that revolutionizes crypto trading!

SwapZilla — is a unique infrastructure solution that revolutionizes crypto trading!
It is foolish to deny the fact that blockchain technology and associated crypto assets have come to our world for a long time. If earlier, many experts were skeptical about this, now their advantages are more than obvious. After all, decentralized technology has a number of features, with respect to which the existing centralized schemes lose on all fronts. For example, thanks to blockchain technology, people will finally find decent protection for all their data and financial transactions, because it is simply impossible to forge data in decentralized blocks of the Ledger.
Moreover, all decentralized transactions become anonymous, but at the same time as transparent as possible, during which people can make transactions of various levels, to preserve and exchange their digital assets. At the same time, transaction fees are mere pennies, which can not be said about Bank and other financial payments. And the structure of the blockchain eliminates a large number of intermediaries, allowing both parties to interact directly regardless of their issue. That naturally makes online communication of users even easier and more accessible.


However, despite all the growth and popularization of the entire direction. The blockchain technology itself has not quite gained the desired momentum to fully integrate into our daily lives, as they say. But in order for this to happen as soon as possible, the world needs decent tools and qualitatively built infrastructure for which blockchain technology will be able to demonstrate all its advantages.
What we have seen in principle over the past couple of years, or rather observe the active growth of various projects that are ready to implement the conceived concept as efficiently as possible and in the shortest possible time. But alas, one project in the field is not a warrior, so different experts and day and night generate incredible ideas about how it should look like all this infrastructure, what functions it should have and much more.
So sit back and let's see what can be done here. Moreover, the topic of my today's review concerns this direction, so it will be very interesting.
About the project and its features
So, dear ladies and gentlemen, I am pleased to present you a unique platform called - SwapZilla. To be more precise, SwapZilla is a multi-faceted service, both for its customers and partners. At the same time, its peculiarity lies in the fact that the most capacious to reveal to them the wide functionality of its infrastructure complex. In a word SwapZilla is adapted to any type of client, allowing each of them to find, in its structure, the maximum benefit and opportunity for implementation.
At the same time, the system itself SwapZilla acts more as a trading platform, where the user has a unique chance to get simultaneous access to more than 100 crypto-currency exchanges. And get access to unlimited information channels, analytical data and other financial instruments. In short, the developers of SwapZilla intend to create the most convenient environment for all its participants.

Benefits for user and trader

But in addition to the above features SwapZilla has a number of advantages based on which:
  • the user will find a wide and effective functionality for any transactions;
  • at the same time, the aggregated price range will allow traders of the platform to make all their transactions at the most favorable rate, since it will have open access to all exchange rates of available exchanges. And their I will remind, will not less a hundred;
  • moreover, thanks to the built-in tools of margin, mirror and arbitrage trading within SwapZilla. The trader has a nice opportunity to receive regular passive income. That in principle I believe very convenient;
  • and on the basis of a powerful verification system, the user will receive the most reliable and secure system for storing and transferring not only cryptocurrencies, but also the data itself.
Thus, with all these features and tools, users and traders will finally find a powerful system where you do not need to create dozens of different accounts to be in touch with a large number of exchanges.

Benefits for the investor

As for another category of participants in the cryptocurrency market, a high degree of security and reliability of the system itself is also very important for them, with the help of which they will be able to manage their investment portfolio. Therefore, thanks to the built-in tools in SwapZilla, investors also have instant access to all the numerous exchanges, where at its discretion it can profitably sell a particular asset. I find it very convenient and most importantly, available in just one click. Advanced data Analytics, which includes data on the volume of crypto-currency assets, as well as unlimited access to margin trading, allows to Supplement all this Toolkit.

Benefits for B2B partners

As you have already understood, within the framework of SwapZilla you will find a huge number of crypto-currency and financial projects on a decentralized basis, as well as all kinds of exchanges and exchangers. At the same time, favorable terms of cooperation from SwapZilla for B2B partners are simply obvious. First, these structures will be able to join the SwapZilla platform for free. Secondly, due to the mass popularization of SwapZilla, these companies will be able to get unlimited access to their target audience, thereby provoking positive dynamics of their growth. And, thirdly, the SwapZilla platform takes all the costs of checking its clients on AML and KYC procedures, which naturally helps to reduce these costs for many blockchain projects. All this and much more is available for all B2B partners. And most importantly, you can learn a little more about it in the white paper SwapZilla.


Naturally, to gain access to the platform, the founders of SwapZilla developed their internal token SWZL, which meets all Ethereum and ERC20 standards. At the same time, the token itself is similar to a market bond, which allows its holder to receive additional passive income.
In total, 30 million SWZL WILL be issued for the development of the system, of which more than 27 million will be allocated for IEO sales, with an initial cost of 1USDC/USDT for 1 SWZL. Which I think is pretty good.


Of course the concept and idea SwapZilla is brilliant. And it deserves your attention. Moreover, this structure is able to offer us as users a wide range of services, and therefore be useful in practice, not just in words. But to you more in detail deal in all its peculiarities, the twists and turns and details, I strongly recommend to continue you its familiarity with SwapZilla. After all, for this, I specially prepared all the necessary links to the official resources of the project, which you will find at the end of this article. Therefore, read and develop. And on this perhaps all and until a new meeting!

The official resources of the project SwapZilla:

MY ETH ADDRESS: 0x223f73C0cf1f9437D43382F8aDb63dA2479661B0
submitted by tspmhack10 to u/tspmhack10 [link] [comments] Announced Launch of Margin Trading

This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in the press release. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the press release.
As announced on the official website, the industry first 3rd-generation cryptocurrency exchange, (, has completed public test and officially launched margin trading.
(All products, including margin trading, are now only available to Non-US clients.)
What Is And What Is Margin Trading? is the industry leading crypto to crypto trading exchange that offers a broad range of products and services to overseas clients. Architected by a group of Wall Street quant trading veterans, the platform has rapidly expanded its global client base to over 100,000 registered users and 35,000 community members. With its client-centric approach and commitment to listing only high-quality projects, delivers high-quality client services and trading experience through its innovative trading platform.
Margin trading on is a financial derivative trading service offered by the platform. users can leverage their tradable asset for potential higher return on investment. However, they must also understand and bear the risk of potential losses from margin trading. The currency pairs that can be traded on margin are BTC/USDT, ETH/USDT, ETH/BTC, XRP/USDT, XRP/BTC, and XRP/ETH.
The newly launched margin trading function is a further step by the platform to serve its users with industry top product design. It is also regarded as a new effort to build up a more comprehensive product collection.
How Does Margin Trading Work?

1.Initiate the Function with Margin Account
To better protect the fund of clients, margin trading requires a separate “Margin Account.” Users must transfer their assets from Cash Account to Margin Account as collateral for margin loan before starting margin trading. Upon transfer, users do not need to request for margin loan. System will automatically apply the maximum leverage based on their “Margin Asset” balance.

2.Interests of Margin Loan
To keep users well updated of their asset status, interests of margin loan are calculated and updated on user’s account page every 8 hours. Less than 8 hours will be counted as 8-hour period. allows users to repay the loans by either transacting the assets from the Margin Account or transferring more assets from the Cash Account. This is very friendly, especially to new margin traders.

3.Computation of Margin Requirement and Liquidation
Initial Leverage = 3
Initial Maintenance Leverage = Initial Leverage *2
Effective Initial Margin (EIM) = (Borrowed Asset + Interest Owned) / (Initial Leverage -1)
Effective Maintenance Margin (EMM) = (Borrowed Asset + Interest Owed) / (Initial Maintenance Leverage -1)
Current Leverage = Total Asset / Net Asset (which is Total Asset – Borrowed Asset – Interest Owed)
Margin Call: When Net Asset is lower than 1.2 times of EMM, the user will receive a margin call via email.
Liquidation: When Net Asset is lower than EMM, the user’s margin account will be subject to liquidation.

4.Liquidation Process
In order to mitigate price deviation due to market volatility, uses composite reference price for the calculation of margin requirement and forced liquidation. The reference price is computed by taking an average last trade price from five exchanges (if available at the time of computation) –, Binance, Huobi, OKEx and Polonium and removing the highest and lowest price. Users are allowed up to 48 hours to take action for loan repayment.

5.Typical Use Case
Take an example of BTC/USDT with 10th leverage.
If you expect that BTC price would go up from 10,000 USDT to 20,000 USDT, you can borrow a maximum of 90,000 USDT from with 10,000 USDT capital.
At the price of 1 BTC = 10,000 USDT, you can buy 10 BTC and then sell them when the price doubles. In this case, your profit would be
10 BTC* (20,000 – 10,000) = 100,000 USDT
Without the margin, you would only have realized PL gain of 10,000 USDT. In comparison, margin trading with 10x leverage amplifies the profit by 10 times.
On the other hand, what if you expect that BTC price would drop from 20,000 USDT to 10,000 USDT?
You can borrow a maximum of 9 BTC from with 1BTC-equivalent of capital margin.
At the price of 1 BTC = 20,000 USDT, you can sell 10 BTC and then buy them back when the price drops by 50%. In this case, your profit would be
10 BTC* (20,000 – 10,000) = 100,000 USDT
Without the ability to trade on margin, you would not able to short the token in anticipation of falling price.
What Will Margin Trading Bring to Users?
First, the margin trading function enables users to amplify their trade size, and thereby brings incremental liquidity to not only platform, but also the cryptocurrency market as a whole.’s provision of margin trading will be beneficial for the trading community as traders will have the ability to fill order books with deeper liquidity, thereby creating ever-tightening spreads.
Second, BitMax’s provision of leverage allows its users to more easily enter and exit positions on the trading pairs, as the market has enhanced access to capital. is currently sustaining one of the largest average daily trading volumes according to the reported data on The increasing volume leveraged by margin trading would feed into’s overall trading volume and would fuel the exchange to continue its positive trend in the volume growth.
Third, new liquidity from competitor exchanges will be attracted to platform.‘s launch of margin trading is a tempting invitation for new users who intend to amplify their positions. Traders seeking to benefit from margin trading will bring in new capital from external exchanges to BitMax’s order book.
Trading on margin is the process by which users can borrow funds from the platform, and thus would be able to trade more digital assets than they normally are able to afford. Margin trading allows users to increase buying power to potentially achieve higher return and makes it possible for users to generate positive profits when the market price goes both up and down. The trader’s own funds serve as collateral, or margin, for the loan. Once a trader closes his or her position, purchased assets will automatically be deducted as loan repayment against borrowed Asset. designs the margin trading product to increase the volume and liquidity of the platform, and ultimately benefit its platform users. With its solid technical background, leading transaction-mining & reverse-mining model, and industry top client-centric strategy, it is widely believed that launching margin trading goes above and beyond a broadened adoption of platform, but enhances liquidity solution from a rising exchange leader.
For more information, follow BitMAX on:
Original link:
submitted by BitMax_Support to BitMax [link] [comments]

Margin Trading  Trading Terms - YouTube Complete guide to margin trading on Binance - YouTube What trading on margin means and how to use it  The Dough ... Trading on Margin - Introduction Margin Trading 101: How It Works - YouTube

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. Margin trading from A to Z by Michael T. Curley, 2008, Wiley & Sons, Incorporated, John edition, in English Margin trading is a double-edged sword - it cuts both ways. If the stock price rises , the investor makes twice as much profit as with his own cash only. Similarly, if the stock price falls, the investor loses twice the amount. See more Wiley Trading Ser.: Margin Trading from A to Z... Email to friends Share on Facebook - opens in a new window or tab Share on Twitter - opens in a new window or tab Share on Pinterest - opens in a new window or tab. Margin Trading: 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,

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Margin Trading Trading Terms - YouTube

Your A to Z on margin trading with Binance. Learn everything from opening your account, how to long and short and how to repay margin loans. Subscribe to kee... ⚡️ Welcome Welcome Group "Margin Trading" Gather a Closed group, and while out instructions and deals ===== Ký Advertising sign: BingBon: (Transactional copy floor ... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... Why are we going through all the trouble of setting up a account and using MetaTrader 4 when we could just buy Bitcoin and have it increase in value in a wallet? Brian explains the ... I had a question regarding trading on margin. I made this to start the conversation however we can go much further in depth on any of these topics. Let me know where we want to take the conversation!