What’s Cryptocurrency Margin Trading?
Conventionally, Cryptocurrency trading can only start with a BUY to open order. However, in the form of margin trading, you can start with an order to either BUY or Sell to open. In other words, you can take advantage of the market volatility taking either long or short positions depending on your views. Additionally, margin trading allows the traders to take more Cryptocurrency positions than the amount of funds in the margin account. So-called “Leverage Trading” is widely used and available for the FX, CFDs, and Futures products worldwide.
It is highly recommended to be extra careful when you are trading with the margin accounts. Taking excessive leverage can lead to exponential return that could also result in losses prompting margin calls (or stop outs) when the trader’s equity drops below the minimum required margin. Traders can always contribute more capital to avoid margin calls, however, the risk has to be carefully managed.
Wisebitcoin has adopted variety of Cyrptocurrencies such as Bitcoin, BitcoinCash, Ethereum, Ethereum classic, Litecoin, Ripple, Dash, Monero, Zcash, EOS, Stellar, Augur, Gnosis, Quantum, Cardano and many more. By introducing these Cryptocurrencies to margin trading venue, we strive to take part in advancing the future of blockchain technology.