What are the Risks Involved with Margin Trading and How to Trade With Leverage Properly?
The trend of leveraged crypto margin trading has set new heights consistently in the year 2021. Through April, the prices of cryptocurrencies were higher which meant huge profits for the traders. But soon the prices dropped back down again, it was a completely different story. Leveraging money is inherently risky, no matter how the market appears to be trending, or how talented you are. So, it’s important for you to understand all about BitMEX margin trading and what are the risks involved with it. What is margin trading? Margin trading is all about trading on the borrowed or leveraged money. In order to get a loan, you need the margin or collateral first. It is like a deposit which is controlled by your exchange until you repay the loan amount. Then as per the rules of crypto exchange, you can borrow some multiples of the amount of capital that you’ve locked in. it is the ratio of what you have put in versus what you take out is known as leverage. To open leveraged tradin...