What is margin trading?

Margin trading (trading on margin) is a method of trading that involves borrowing a part of the funds required for trade order. The collateral for the loan is a balance on the trader's account. On CEX.IO margin trading revolves around the cryptocurrency. So, to enter margin trading, you have to own a balance sufficient to open a minimum position. Depending on the direction you predict the market will move, you can open either buy or sell position. Leverage allows you to chose how much borrowed funds will be used. 1:2 leverage will use your balance to fund 1/2 of the position size, the rest will be borrowed. 1:3 margin will cover 1/3 of position size with your funds and borrow 2/3. The higher the leverage denominator is, the higher your potential gain is, however the risks increase as well. 

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