Categories: Glossary

Margin Trading

Understanding Margin Trading

Margin trading can be risky for inexperienced traders who may face a margin call if the market moves against their trades.

When a trader takes a “short” position on margin, they become a Margin Bear.

Conversely, when a trader takes a long position on margin, they become a Margin Bull.

Margin trading enables cryptocurrency traders to take larger positions and buy more cryptocurrencies than they could without margin trading.

To participate in margin trading, traders need a margin account, while regular cash accounts are sufficient for normal trading.

The margin amounts can vary, with traders able to borrow as little as 10% of the cryptocurrency position or even more.

Coincu

Share
Published by
Coincu

Recent Posts

FSOCIETY Threatens Massive Bitfinex Data Leak: 400,000 Users At Risk

Bitfinex data leak allegedly by FSOCIETY includes 2.5TB of exchange data and 400K users' details.…

11 hours ago

Disappointment Clouds Friend Tech v2 Launch Despite Exciting New Features

According to Parsec, Friend Tech v2's launch disappointed many, with 95% users unable to claim…

11 hours ago

Ethereum Classification Supported By Ripple CEO In Battle With SEC

The legal debate over Ethereum classification intensifies as Consensys sues SEC for regulatory overreach.

21 hours ago

Bitcoin ETF Inflow Shows Positive Signs With $378 Million On May 3

Bitcoin ETF inflow witnessed a significant surge on May 3, signaling a potential shift in…

21 hours ago

Friend.tech V2 Launched With FRIEND Token Airdrop

Friend.tech V2 was unveiled with the airdrop of FRIEND tokens and the Money Club feature.

21 hours ago

Grayscale Spot Bitcoin ETF Records First Inflow Of $63 Million Since Launch

Grayscale spot Bitcoin ETF sees its first daily increase since January, with a net inflow…

21 hours ago

This website uses cookies.