Margin trading is a type of asset trading using funds provided by a third party (exchange or broker). Traders borrow money from the crypto exchange using their own money as collateral. When the trade is over, the user brings the borrowed money back to the exchange. Standard transactions have a leverage of 1: 1. However, you can increase the size of your position up to 200 times (only on some exchanges).
It’s obvious that the more you invest, the more gains you may reach. That is why through margin trading you can quickly earn much, even if you have only $100 that you can afford to invest. But do not forget that reinforced transactions usually result in either higher profits or more significant losses.
There are many ways to earn via margin trading. Even in the bear market, traders can get profits through short positions. Of course, price movements create opportunities to earn profits out of buying and selling cryptocurrencies. But be sure that you understand the market behavior and use different types of orders which helps to secure the funds. Never forget that investing via margin trading is associated with risk. Before making decisions, be ready to do your own research on the market and the actions you are interested in.
If the market trend is opposite to your belief, you will receive a margin call from the exchange. It happens when the price hits a certain point where trading starts to be too risky to continue with the same collateral and leverage. A margin call is a helping hand from the exchange requiring to increase the collateral. If it is impossible the position gets liquidated. If the additional collateral doesn’t help, the position gets liquidated, also.
Profits and losses in margin trading are higher that’s why it’s important to use the exchange with high liquidity. Also, a great opportunity gives you Demo Mode, as you can get your experience on how to trade with the leverage and try margin trading without investing real money.
Now let’s have a look at some of the most convenient cryptocurrency exchanges that provide a margin trading option.
Rate the article
We reserve the right to change this policy at any given time, of which you will be promptly updated. If you want to make sure that you are up to date with the latest changes, we advise you to frequently visit this page.
What User Data We Collect
When you visit the website, we may collect the following data:
Why We Collect Your Data
We are collecting your data for several reasons:
Safeguarding and Securing the Data
Global Digital Consulting LLC is committed to securing your data and keeping it confidential. Global Digital Consulting LLC has done all in its power to prevent data theft, unauthorized access, and disclosure by implementing the latest technologies and software, which help us safeguard all the information we collect online.
The data we collect by using cookies is used to customize our website to your needs. After we use the data for statistical analysis, the data is completely removed from our systems.
Please note that cookies don't allow us to gain control of your computer in any way. They are strictly used to monitor which pages you find useful and which you do not so that we can provide a better experience for you.
Restricting the Collection of your Personal Data
At some point, you might wish to restrict the use and collection of your personal data. You can achieve this by doing the following:
Terms and Conditions
Please read these Terms and Conditions ("Terms", "Terms and Conditions") carefully before using the https://icoda.io website (the "Service") operated by Global Digital Consulting LLC.
Your access to and use of the Service is conditioned on your acceptance of and compliance with these Terms. These Terms apply to all visitors, users and others who access or use the Service.
Links To Other Web Sites
Our Service may contain links to third-party web sites or services that are not owned or controlled by Global Digital Consulting LLC.
Global Digital Consulting LLC has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third party web sites or services. You further acknowledge and agree that Global Digital Consulting LLC shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, goods or services available on or through any such web sites or services.
We reserve the right, at our sole discretion, to modify or replace these Terms at any time. If a revision is material we will try to provide at least 30 days' notice prior to any new terms taking effect. What constitutes a material change will be determined at our sole discretion.
If you have any questions about these Terms, please contact us.
We participate in Paris Blockchain Week Summit