Re: Make even more profit on crypto trading with trade-mate.io
What is margin trading in crypto
Margin trading means trading using borrowed funds. This allows you to trade larger amounts to get more profit from a single trade and increase your deposit faster. The amount allocated for the trade is provided as a credit.
It should be understood that trading with leverage involves high risks and is recommended only for professionals and experienced traders. If your forecast is incorrect, there is a risk of losing all the money on the deposit.
When opening a position, a parameter such as the liquidation price is displayed - this indicator means that when the specified rate is reached, the position is automatically closed, and the funds allocated for the trade are completely debited from the account and returned to the exchange. The higher the leverage, the closer the liquidation price is and, consequently, the higher the risks are. To avoid losses, it is recommended to allocate no more than 5-10% of the Deposit per trade, depending on the leverage size.
The second nuance that needs to be taken into account is the fees. When using leverage, the trader pays a fee in proportion to the total amount of the trade. That is, using 100x leverage, the trader will pay a fee a hundred times more, so if the forecast is not correct, the losses will be even greater. In addition to the loss from the price difference, if the exchange fee is 0.1%, the trader will lose additional 10%.
Where to trade crypto with leverage
The most popular platform for margin trading in crypto is BitMEX. The platform supports leverage up to 100x, but the selection of cryptocurrencies is small: Bitcoin and a few of the largest altcoins are available to traders. Another popular platform that provides trading with leverage is Poloniex. In 2019, Binance added margin trading as well. The last two sites are required to pass a verification for use of borrowed funds.
Traders can trade on Binance, BitMEX and Poloniex using a convenient terminal from Trade-mate.io. The platform supports Autotrade and Smart trade with trailing mechanisms. Recently, the service added support for margin trading on BitMEX via the API. Trade-mate.io was the first service of its kind to provide such an opportunity. To protect users' funds, leverage is limited to 25x.