Margin Trading Crypto Example. Margin trading on the crypto.com exchange allows you to borrow virtual assets on crypto.com exchange to trade on the spot market. With margin trading you can, for a theoretical example, buy $10,000 worth of bitcoin with only $5,000 (borrowing 50% aka leveraging 2:1 or 2x).
In contrast with regular trading in which traders use their own capital to fund trades, margin trading allows traders to multiply the amount of capital they are able to trade. Simex is an example of a popular crypto margin trading exchange that us traders can trade at. For example, you may enter a margin trade with a 2:1 ratio.
When you decide to open a trade with a margin requirement of £500, the margin you need will now be £500 and the margin you can use is £500.
Margin trading on the crypto.com exchange allows you to borrow virtual assets on crypto.com exchange to trade on the spot market. Jimmy believes that ethereum will be going up in value soon. We’ll proceed to break down the process of creating a leveraged bitcoin position. If you put up one btc, you will be lent another one until your position is closed.