How to trade Bitcoin with leverage
Even if you have small capital, you can make a lot of money on the cryptocurrencies market. There is a option called margin trading for potential higher profits. It gives you an option to trade larger amounts even with small capital. It is important to mention that margin trading has a very high risk and is not recommended for everyone.
What is margin trading
Going hand in hand with margin is leverage. You use margin to create leverage. Leverage is the increased buying power that is available to margin account holders. Leverage allows you to pay less than full price for a trade, giving you the ability to enter larger positions than would be possible with your account funds alone. Leverage is expressed as a ratio. A 2:1 leverage means that you would be able to hold a position that is twice the value of your account. If you have 0.1 BTC in your trading account with 2:1 leverage, you would be able to purchase 0.2 BTC.
Can you imagine you can use 100x leverage? In our example you can make a trade worth of 10 BTC!
How much can I earn?
If you use 100x leverage and price moves only 1% towards favorable upside price direction you will double your original initial margin! But in case the price action ditches your predictability, the loss would be as much as the profit!
Where to trade cryptocurrencies with 100x leverage
Bitmex has gained a great reputation in a short while and many traders use it frequently (like our team). Leading the margin trading, the exchange offers up to 100X leverage margin trading, both long and short. It’s very easy to operate and has good support. With our link you can receive a 10% for first six months discount on the trading fees, upon registration.