Hello everyone welcome to another home work in another week, well this home work is about margin and leverage trading so let's begin.

Home Task

What is Crypto Margin Trading?

Margin Trading is a risky type of trading and also can be beneficial to those who knows what they are doing because in margin trading a loan is collected from a third party so that a trader can enter a higher position and earn higher profit.

For example if i have $20 and the trade i am trying to enter is higher than $20 i will then trade margin with 2x leverage which will give my $20 the power of $40 so that i can trade and make higher profit and also in the bad scenario if the market goes against you then you loss higher too.

Advantages of Margin Trading

• It leads to Higher profit for traders
• Traders can borrow assets they can not normally afford
• It allows users to be able to enter more position.

Disadvantage of Margin Trading

• it can lead to greater loss
• It is a high risk type of trading
• A trader can loose all your position

How To Plan For Trading In Crypto Margin Trading.

Planning in Trading is very important because without planning in Trading you will not know what you are doing so planning is needed so that you can enter a trade and exit a trade at the right time so i created a list of rules that will guide a new trader that wants to trade margin.

• Always read Note warning so that you don't engage in trades you don't want.
• A Trader should never make a decision based on emotions but technical analysis
• A Trader should know he/her risk level so that he or she don't risk all their capital.

Crypto Exchange Name that provide margin trading service and what margin they provide.

• Binance Exchange is the biggest exchange and it offers isolated margin trading and cross margin trading with a leverage up to 10x
• Bityard is an exchange that is not present in many country and it offers 125x leverage
• Poloniex is a high liquidity exchange and it offers leverage
• BitMEX with majors in Bitcoin margin trading also play key role in both margin and cross margin trading with upto 100x leverage in margin trading.
• PrimeXBT is seen as a versatile platform with activities in the FX, Commodity and index for Margin trading with leverage offers of upto 1000x for FX.
• Kraken with majors seen in the cross margin trading with offers upto 5x. It is a US based exchange with competitive fees.

What is Leveraged Tokens Trading?

This is the type trading that doesn't involve assets but contracts that are given by the platform and a trader who request for contracts need to be very careful so as not to get liquidated.

The contract is an asset that is meant for buying and selling quick and not for holding or a long term investment.

Advantages of Leverage Token

• it allows traders to trade assets that they don't personally.
• It gives more profit that is if your trade is successful
• it doesn't matter if the market goes up or down you can still trade leverage.

Disadvantage of Leverage Token

• it can lead to bigger loss if the trade doesn't go your way.
• They are very risky product.
• It does not encourage HODL/HOLDING and not for long term trades.

How to plan for Trading in Leveraged Tokens

• They are short trading so you need to always be technical and trade without emotion
• Avoid trading with sentiment maybe in a bit recover lost grounds don't with emotion it is very important
• Select the beat platform and avoid fake platform or platforms with low fees.

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

+Bybit is a platform that offers leverage tokens of 3x - 100x

• FTX was seen to be the first to Introduce leveraged token with offer up to 3x
• pionex is a platform that offers leverage tradein

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.).

In the picture above the diamond pattern has shown that the price of Ethereum is going to move either up or down because what this pattern actually shows is a break out imminent either up or down and as you can see that it broke up but we are still to confirm the breakout which will be confirmed in the coming days.

Conclusion
A trader that want to trade margin of leverage will have to be an expert in technical analysis so that he or she don't make mistakes and end up with losses.