WHAT IS MARGIN TRADING

Margin trading is a method of trading that permits traders to access huge sums of capital to leverage their position through loans from a third party. Through this traders are able to trade cryptos that they cannot normally afford. Its a good way to increase your capital fast although you may have to be careful with it to avoid loss

How does it work
When a trader first initiates a trade, he or she is required to commit a percentage of the total sum borrowed as some sort of collateral. The inital amount inputed is what is known as a margin or otherwise a leverage. Basically leverage is the ratio of borrowed sum to the margin. A trader can decide to leverage by any ratio, 2:1, 3:1, 100:1 these are oftenly represented in x format (2x, 3x , 100x). To make this more simple ill give an example. If a trader opens a trade with 1000$ worth of btc at a leverage of 2x or 2:1, he or she could buy up to 2000$ worth of BTC from the borrowed capital. The leverage controls your profit and loss for example 2x ratio doubles your investment if you make profit, lets say you start with 100$ on 2:1 ratio , your profit will be twice more but if you get a loss itll be twice less meaning the loss would be so much you could loose your total sum. Different trading platforms offer different leverage rates so the money borrowed could be from the other traders or the exchange itself.

HOW TO PLAN FOR TRADING IN CRYPTO MARGIN TRADING

Start with a smaller positions - it is advisable for beginners to start with smaller positions not get too greedy. There souls be that subtle reminder that it could cost you everything so you have to trade wisely. Start with smaller positions and collateral then with time you can go bigger

Check interest rates and fees before trading
Youll need to be sure of the additional intrest rates of fees on your crypto exchange before venturing into it. Like i said earlier different trading platforms offer different rates so you should choose which ever suites you

Be mentally prepared for anything- youve got to be mentally prepared, have a strategy and a clear plan, an exit plan and also be prepared for the worst and dont give up.

Make proper studies and research before trading to avoid losses.

CRYPTO EXCHANGES THAT PROVIDE MARGIN TRADING SERVICE AND THE MARGIN THEY PROVIDE

There are many cryptoexchanges that offer trading services as trading has become a lucrative source of income. It can be rewarding and extremely risky. Margin trading is like that and as such different crypto exchanges provide different rates for traders and ill mention a few

Binance- they offer leverages from 1-125x with fees at 0.1%. Its the most widely used or at least that what most people i know use, choices differ though.

Bybit- they offer a leverage of 100x with fees ranging from 0.075%

BitMex- they iffer a leverage of 100x with fees at 0.075

Huobi. They offer a leverage of 3x with fees at 0.2%

Kraken- only available in the US with a leverage of about 5x and fees at 0.02%

WHAT IS LEVERAGE TOKEN TRADING

Leverage tokens are special tokens that gives traders a means of earning in bullish or bearish markets with less risks. They cannot be stored on wallets but only traded and exchanged. They can be found on various exchanges and gives you a great advantage in the crypto market.

With these tokens, traders are able to predict price movements without having to even buy the coin, so loans or collateral is involved and the risks are reduced to barest minimum so its now up to the trader to carefully predict charts movements.

How it works

Leverage tokens would come across with attachments such as these DOWN/BEAR or UP/BULL. For example using BTC it will be listed as BTCUP or BTCBULL and BTCDOWN or BTCBEAR.
This also goes for many other crypto assets
So whenever BTC goes up BTCUP and BTCBULL goes up at the same time BTCBEAR and BTCDOWN goes down.
If BTC goes down then BTCBEAR and BTCDOWN goes up and BTCUP and BTCBULL goes down

So basically traders have to predict when these crypto goes down or up by reading the charts for example if the chart shows BTC going down and you decide to buy BTCBEAR/BTCDOWN that means when the market corrects itself and it goes back up you make profit by what ever margin you used wheter 2x or 3x etc if your predictions are wrong and it just keeps on going down then you make a loss worth the margin inputed.

BTC current price going up

leverage token of BTCUP going up equally

leverage token of BTCDOWN going down

On the first image it shows the current price of BTC and the second shows BTCUP with an up trend and BTCDOWN with a downtrend. Meaning those who predicted BTC would go up and bought BTCUP/USDT at the right time made profits and those who predicted BTCDOWN would go down also made profits and hopefully exited on time.

EXCHANGES THAT OFFER LEVERAGE TOKEN TRADING

FTX- it has a leverage range of up to 3x

Poloniex- with a leverage range of up to3x

Bittrex- a leverage range of up to 3x

Binance- has a leverage range from 1.25x-4x.

PRICE FORECAST FOR CRYPTO ASSETS

Ill be using Trading view for this since it has an RSI and ill be using the BTC/USD pair

From the charts we can see that btc is having a recent uptrend after a recent from some days back to the 25th of may. I use the RSI to note where it happened below

The price is currently moving towards 60 and possibly end up with a bullish run.

The price is currently at 58503 and is most likely to hit hit 60523 if i should buy at the moment

It suffered a resistance at 53154 and reverted back to 57582.

In conclusion
Margin trading and leverage token trading has provided opportunities for traders to maximize their profits and trade , Essentially itll all fall on the trader to make the right choice when trading with the big risks involved.

Cc
@steemcurator02
@steemcurator01
@stream4u
@cryptokannon