Post
Topic
Board Trading Discussion
Re: Margin Trading
by
kenziefried
on 30/09/2018, 18:50:29 UTC
As i know there are 2 type of trading, that is margin trading and spot trading, all asset like crypto, stocks, commodities and forex we can trade it by spot and margin trading. Spot trading will be have lower risk than margin trading although we can make profit only from up trend, and margin trading have higher risk because of high leverage. In margin trading more possible our balance going to zero from wrong prediction but in spot trading especially on stock and forex market is our balance not to be going to zero because this asset has low volatility.
The thing with people is that because of their lack of knowledge, they just assume that every style of trading is what they can delve into, and they tend not to understand the risk involved in all forms of trading. Marginal trading is a whole lot risky than spot trading even though the potential to earn more if you are knowledgeable is there, but that knowledge is something any one should always be ready to seek first and at least do some little practice before even making an attempt, but instead, all they do is to just screw up their investment pretty fast.