Margin or leveraged trading refers to opening a large position on an exchange using a small amount of money as collateral. Leverage is an instrument that gives an opportunity to make a bigger profit, but on the opposite side, high leverage applied can become a short path to a liquidation and margin loss.
theoretically, if a trader is 100x long, his margin is worth zero after a 1 price drop. 44 adverse move to satisfy its maintenance margin requirements. So, as you hopefully realized by now, the maintenance margin requirement when using more than 25x leverage is absurdly high.
With 100x leverage added, only 1, 000 is required as margin.
bitfinex, the same exchange embroiled in fraud allegations over the loss of 850 million in customer funds, is adding 100x margin trading.
margin trading allows traders to access greater sums of assets by paying just a portion of them and hence earn more profits. For example, if an exchange is providing leverage of 100x on lending assets then you can get access to 1000 by paying a mere 100. However, it depends on the platform how much leverage it is offering.
We are the first margin trading exchange in india providing 100x leverage on inr deposits. Margin trading provides a great opportunity to increase your capital.
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margin trading means that you can enter a trade with only a small.
basefex is the margin exchange that allows to leverage up to 100x (!), both long and short positions on bitcoin (btc), ethereum (eth), and more trading pair.
the liquidation price of our position will be a little over 500 usd because, at that level, we lose exactly our initial 1,000, plus interest and fees. Margin trading can also be against the market, so we can also have a short position with leverage. High leverage risk the higher the leverage, the closer the liquidation price is.