What Is Crypto Margin Trading?
Crypto margin trading is an advanced trading strategy that allows traders to open positions larger than their account balance, amplifying potential profits but also increasing risk.
To engage in this type of trading, traders must deposit an amount of collateral known as margin with an exchange or broker.
The amount of leverage used (e.g., 2x, 5x, 10x, 50x, 100x) determines the size of the position relative to the trader’s own funds.
As the market moves, the trader’s account balance and the required maintenance margin may change, which can trigger a margin call if the account balance falls below the maintenance margin.
If the trader does not respond to this call or is unable to meet the margin requirements, the position may be liquidated automatically, resulting in a loss.
Crypto margin trading allows traders to increase their exposure to the market, but it carries higher risks and requires careful risk management.
View our list of crypto margin trading platforms here, and get started today!
We have also written a useful trading tips guide to help you reduce your losses and maximise your gains.
You can also visit our NFT resource directory to find useful links to help you invest in NFT more effectively.
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All information in this article is for educational purposes only.