Getting Started: Margin Trading

Bitcoin Margin Trading

Margin trading is a method of trading that involves borrowing funds. It allows you to trade more than you’d be able to trade using your funds only. CEX.IO currently offers Bitcoin margin trading with 1:2 and 1:3 leverages on BTC/USD, BTC/EUR and ETH/BTC pairs. More options will be added in future.

Benefits of Bitcoin Margin Trading on CEX.IO

Margin trading on CEX.IO is absolutely simple. There is no need to open extra accounts to trade with leverage. Funds borrowing is done automatically by position placement. Therefore, rollover fee is charged only for efficient time period, while position is opened. CEX.IO guarantees position closing at the price not worse than stop loss price. Finally, risk-preventing mechanism on CEX.IO guarantees that your account balance cannot get negative.

Risks Associated with Bitcoin Margin Trading

Trading on margin has two sides of the same coin, amplifying profits and losses to the same degree. Considering high volatility of cryptocurrency, Bitcoin margin trading is a very risky activity. However, it can still increase your profit significantly more than you'd be able to do using your own funds only.

Margin Trading on Price Growth

If you expect the price to grow, consider opening a long position. Roughly speaking, you will use your own funds and borrowed funds to buy at a certain price and then sell at a higher price later. Read more here.

Margin Trading on Price Fall

If you expect price to fall, you can open a short position. In this case, you use your own funds and borrowed to sell, wait till the price falls, and buy back at a lower price. Read more here.

Bitcoin Margin Trading Fees

CEX.IO currently charges the following margin trading fees:

Open fee — fee for position opening
Rollover fee — rollover fee for position prolonging

You can always find up-to-date fees on the transaction fee page.

Deposits & Withdrawals

CEX.IO offers several options for fiat money (USD, EUR etc.) deposits and withdrawals, depending on your country and account type. You are always free to withdraw funds from CEX.IO account upon your will at any given moment.

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