Crypto Academy Week 12 - Homework Post for [Crypto Professor @stream4u]

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Margin trading

Margin trading is referred to in the stock market as the procedure of buying or borrowing stock by an individual investor. Margin trading in simple terms is the chance for you (an investor) to pick high trade positions which are more than your account balanced. This a situation whereby the time you see a slight profit gain, you always want to close the trade. LOL

1. What Is Crypto Margin Trading?

Crypto margin trading is practicing Margin trading with cryptocurrency. Like we explained above, it just a strategy to have profited by bearing the risk to your trade. Using the little to get more to stand a chance to make a profit. Like the definition, you have the chance to add up your buying position by borrowing from the brokers. As a first-timer, Margin Trade will away sound great in the fact that you can multiply your profits up to about 100 times (100x). While you are excited you can multiple your profit, it the same the other way round.

For an investor to execute a Margin trade, he must have the initial capital. The is the mean a trader can borrow more to trade with and makes huge profits. The investor works on the percentage of the total value which makes up the margin for the trade. These percentages or position and range in levels call leverage levels. So what you need depends on your leverage of what you provide. This leverage ranges from 2x(2:1) to 100x(100:1) in the cryptocurrency market.

For example, you want to borrow $ 100, with a 20x (20:1) leverage, then you need an initial capital of 20% ($ 20).

Margin Trade is open to both long and short positions. Opening a long position means you are predicting that the price will go up and you will be able to make huge profits. Meanwhile opening a short position will just mean you are not sure of the future of that asset. In this case, you are scared of you losing your initial capital.

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2. How To Plan For Trading In Crypto Margin Trading.

Before Looking at getting yourself into Margin Trading, remember you are to have an initial capital equivalent to the percentage of your position. Things you should put in mind are :

• Research the exchange: Find out about the exchange's terms managing Margin Trade. Some will need further information like id verification (like poloniex) to give you access to the Margin page.

• Start slow: For starters, starting at low-level leverage is the best option to avoid losing all your assets in one transaction.

• Check interest rate: Margin trade goes on by borrowing, and they are always an interest rate that attaches to the exchange offer to you. Different exchange platforms offer different interest rates, so it very important to check that out before you lost your funds in the name of trying to execute Margin Trade.

• Used a risk management tool: Stop loss is an important risk management tool in Margin Trade. This tool can always come in when the trade turns to be moving in the opposite direction. To learn how to use this tool in trading.

• Stay on the plan: this where the temptation is always very high. For you hit the huge profits, stick to your plan and kick greed out.

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3. Crypto Exchanges Name That Provides Margin Trading Service and What Margin They Provide?

Exchange	leverage
Huobi	3x
BitMEX	100x,
eToro	2x
Binance	3x
Bithoven	20x
Kraken	5x
Gate.io	10x
Poloniex	5x
Bitfinex	3.3x

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4. What Is Leveraged Tokens Trading?

A leveraged token is a token that allows you to gain a leverage trading position without bordering to manage the Margin. Leverage token is an upgrade of ERC20 tokens which were introduced by FTX. This token has a rebalancing characteristic which helps to maintain fixed leverage. FTX token leverage position without bordering on the fund rates. Leverage token gets it to action by trading FTX perpetual future. The leveraged token allows anyone to intraday leveraged position in the crypto market without bordering on the experience in Margin Trading. It just an opportunity for inexperienced investors in the showcase their trading skills

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5. How To Plan For Trading In Leveraged Tokens?

• Be ready not to keep the same position, be alert to the movement of the prices.
• Leverage token are not investment tokens, so no long-term agenda which will help reduce the chances of losing your funds.
• Research on the token, it passes performance, volatile nature, and the prices.
• The fact that you can make profits have it at the back of your mind that leverage token trading is a risky investment.

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6. Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?

Crypto Exchanges	Leveraged Token
Poloniex	3x
Huobi	3x
Bittrex	3x
Binance	1.25 to 2x

7. Price Forcast For Crypto Assets XXXXXX. (This is similar question from last course, take any Crypto Assets Chart graph, as per its current price and its market trend predict its future price for only next week, what will be its future price for next 1 week.You can predict for any direction up or down but explain it properly on what basis you have predicted the price. What will be the possible low level and high level fornext week.).

Screenshot Poloniex Seven Days chart

Screenshot coinmarketcap 30th April price

Screenshot coinmarketcap 7th May price

I have putting añ interest in Tron lately, you can see the screenshot for today above. I'm anticipating that in the next 7days, from today. That will be Friday the 14 of May, we will be having a low level of $ 1.3 and a high level of $ 1.9 on Saturday 15 May.

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Thanks, @stream4u for this learning opportunity