What is Leverage and Margin

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 a traders own funds (margin) required, in comparison to the size of the position that they wish to open. (1:1000, 1:100, 1:50, 1:20, 1:10, 1:2, etc.) MARGIN is the amount of a Trader’s own funds that are required to open a position. Example: with 1:200 leverage I only need 0.005 BTC of my personal funds (Margin) to trade with 1 BTC. PrimeXBT offers the following Leverage: - Cryptocurrencies - up to 1:200 for BTC and ETH, and up to 1:100 for altcoins - Indices and Commodities up to 1:100 - Forex pairs - up to 1:1000 Detailed information regarding leverage for all available instruments can be found here