I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?
Okay, let me explain a few things
First of all, you should always remember that with margin trading you are basically playing against the "house". And the house in this case is the exchange where you margin trade. You may be playing against an exchange even when you are long with your own coins, but it is always the case with shorts. In practice, it means you should expect things which you normally wouldn't, for example, exchange forcefully liquidating your margin position on some completely arbitrary grounds (like an alleged glitch in the system)
Second, you should understand how the margin system is supposed to work, i.e. when you are likely to have your position liquidated, and here I mean real liquidation, not the one like described above (i.e. wrongful liquidation). If you don't know or understand how it works, you better stay away from margin trading on this exchange until you do. Otherwise, you risk losing your balance due to a technically legitimate margin call. And remember at all times that you are playing against the house with margin trading