Basics of Leverage Trading

The use of leverage for trading on PrimeXBT platform allows traders to hold larger positions than they could ordinarily have held with their capital on other exchanges.

Leverage is a technique involving the use of borrowed funds in the purchase of an asset in order to increase potential profits. The point of using leverage is to magnify returns. PrimeXBT automatically provides funds for all its.

Margin is the amount of a trader’s own funds that are required to open a leveraged position.

The leverage of PrimeXBT for the cryptocurrencies is 1:100. Therefore, margin requirement for the BTC/USD contract is 1% (i.e. 1/100*100%). So, if you have a trading account with $1,000 in it, you can take advantage of leverage worth up to $100,000.

The leverage of PrimeXBT for Forex majors is 1:1000. Therefore, margin requirement for AUD/CHF contract is 0.1% (1/1000*100%). In this case, if you have a trading account with $1,000 in it, you can take advantage of leverage worth up to $1,000,000.

It’s important to understand that Margin requirement is the minimum amount needed to keep position from getting liquidated. Traders are advised to keep a sufficient buffer and never utilize 100% of Available margin.

Please also see our video about leverage.