Looking for the perfect investment model you will come across margin trading at some point. But is margin trading for everyone? Probably not. However, if used smart and carefully, this may enhance the amount of your assets. Here we will provide you useful tops on what to pay attention to in margin trading.
Technically, margin trading means trading using the funds borrowed from crypto exchange. In this case you are trading with leverage. Every exchange offers different amount of leverage. With leveraged position, you can increase your profits or losses due to the movements in the price of assets. This is why margin trading is called somewhat ambiguous strategy.
Surely, borrowing funds means fees. Fees are credited to you as long as you keep your position open. The amount of fees differs from exchange to exchange. It should be noted that the system will never let you loose more money then you contributed. This means that when your funds fall to the threshold level, the exchange platform will close your order automatically.
So, you have made up your mind and wish to try margin trading. The next step is to find a decent platform. Binapex crypto exchange is considered to be the best place for it. Binapex offers leverage up to x10 and low transaction fees. To enhance your user experience even more, Binapex offers API connection for trading bots and user-friendly interface.
Margin trading is an ideal way to profit from funds that are not yours. Remember, margin trading is an attractive investment option if you have a decent trading strategy. It goes without saying that you should always double-check the information and do your own research.