Basics of Leverage (Margin) Trading

Leveraged Trading

LEVERAGED TRADING (or margin trading) is a trading technique involving the use of borrowed funds, in order to increase potential profits. Leveraged trading allows you to trade and profit with Volumes much larger than you would be able to if using only your personal funds. Leveraged trading allows traders to profit from both rising and declining markets by means of Long buying or Short selling strategies.

Leverage and Margin

LEVERAGE reflects the amount of my own funds(margin) required in comparison to the size of the position I wish to open.( 1:1000, 1:100, 1:50, 1:20, 1:10, 1:2 ). MARGIN is the amount of a Trader’s own funds that are required to open a position. Example: with 1:100 leverage I only need 0.01 BTC of my personal funds (Margin) to trade with 1 BTC. PrimeXBT offers the following Leverage: - Cryptocurrencies - up to 1:100 - Indices and Commodites up to 1:100 - Forex majors - up to 1:1000 Detailed information regarding leverage for all available instruments can be found here