Do you want to carry out day margin trading? Then, you must land in the best and reliable crypto margin trading platform. The day trading margin would give four times equity purchasing power to the traders for carrying out the trading. For instance, the trader who started with USD 50,000 equity can have the trading positions up to USD 2, 00,000 at any point in the trading day. The trader must have 50 percent of the margin loan to buy the stocks. There are myriad of ways to trade bitcoin, which is a volatile market. The change in the cryptocurrency price in the crypto market would help the crypto traders earn profits.
How to get started with margin trading crypto
Here is the step by step process you must follow to start the crypto margin trading:
You must create an account with the cryptocurrency exchange where you would like to do the trading activities. The registration process must be completed by giving the required details. When the registration is successful, you will receive an email stating that the account is confirmed for transferring funds.
No matter whatsoever may be the exchange, i.e., cex.io, you must transfer some funds into the account to have the capital open for the position. You can transfer the amount through a credit card or deposit using the bitcoins. It is easier to fund the account, but it needs a lot of fees to pay for funds through bitcoins.
Trade screen navigation
You can start trading using the trade button on the best margin trading. You can start to trade by using the trading options that are available with the cryptocurrency exchange platform.
Open a position
In the order window, you can see the order that was placed by you. You can pick the market and stop or limit the order based on your requirements.
Various cryptocurrency margin trading strategies
Margin trading is an investment strategy that comes with a lot of risks and depends on the short-term market movement. The cryptocurrency market is unstable when compared to the forex markets. It also comes with many other risk factors.
Few of the strategies you can embrace while carrying out margin trading include:
Increase the size of the trade
If you are taking a plunge into the margin trading, you must thoroughly understand the margin market without which you would lose the hard-earned money. You can practice by investing a smaller amount.
Do the demo trading
Paper trading is also known as demo trading. This allows the traders who are new to trading to learn how the trading takes place. There are a few websites that will enable people to do the demo in the virtual environment. These platforms are the places where you do not have to invest any money, but it will show the real-time market prices. The demo trading will enable the new traders to use their knowledge on trading without putting their capital at risk.
Learn about different order types
The margin traders would use two deadly combinations, i.e., stop loss and take profit to reduce the risks and open complicated positions. The order type will help you set the profit or the target for losses.
Keep an eye on the fees and interest rates
The bitcoin exchanges would not offer anything for free. If you open a leveraged position, you must pay the interest rate for the funds you have lent from the broker or cryptocurrency exchange. There would be a huge fee charged by margin trading bitcoins, which would cut down the profits.
Set goals and reduce risks
There is a specific risk management strategy that you must follow when you are performing margin trading. This helps you to have a clear profit goal. When you set the goal, adhere to it. You must establish a stop-loss level and stick to the exit goal.
Keep a close watch on fundamental and technical aspects
The technical factors are what decide the rise or fall of cryptocurrency value. The number of traders who are actively taking part in this type of trading would check the technical factors and do a thorough analysis. The fundamental factors will have a massive impact on crypto prices. The change in the regulatory, change in the bitcoin wallet, or hack in major exchanges would have a significant impact on pricing.
If you are confident enough in learning about the cryptocurrency market extensively and can make the predictions accurately about the change in the price, margin trading value of bitcoins, or other digital assets, you can undoubtedly reap huge profits. When you open a wrong position at the wrong time, it results in massive losses and also takes a toll on financial health.
CEX.IO Broker is a platform for trading cryptocurrency. It is the oldest exchange that has gained a huge reputation across the globe.
We are the ideal destination to buy and sell bitcoins and other cryptocurrencies. Our company supports different coins and various trading platforms to trade BTC, ETH, XRP, and BCH. If you are new to the world of trading, you can avail of our brokerage services than our trading platform. We adhere to the standards of safety and security.