What are the risks of Crypto Margin Trading?

[malik6314193 5449]

As in Margin trading we get double profit with single investment. So there is also double chances of losing money if market didn't move as you want. If you want margin trading then you have to know all about it. I will suggest watch tutorials on YouTube about margin trading. 

[Yomose 3704]

1 hour ago, malik6314193 said:

As in Margin trading we get double profit with single investment.

It depends, and if talking about double gain, it does not mean someone really gained. Assuming you borrowed 0.001btc, if it only increased by 0.0015 btc in profit, that means you suppose to gain 0.0005 btc but it will double because of the leverage, but do not forget that if you lose, your funds will be liquidated and the loss too will be double. 

I said it depends because it depends on the levarage you use, you can even gain 4x of your trading capital, but the loss will be 4x if the market go the opposite way. 

[pablomarwan 3082]

Trading in encrypted margin, even though it is profitable and makes good money, is also risky. For example, the price does not go in the direction you want, so as long as it goes the opposite of what you want your capital, it will continue to decrease until the deal stops because you do not have enough money. If you are going to trade with margin, I advise you to train well first, then you can start.

[candyguyyy 43]

there is risk that you can loss all your capital and get sick

[Cryptonix 135]

If trading with leverage does not go as planned, the exchange will at some point ask you to top up your account (this is called a margin call) to avoid liquidating the order. If the trader cannot provide additional funds to secure their order, it will be automatically closed.

[okqqq 33]

Trading on margin can bring big profits but if you lose money from your total amount then only your wallet loses money.

[Ikram mohamed 27]

The risks of margin are very dangerous, you can lose all you money in no time, trade at spot is more safer, yes less profit but you safe your money, but in margin you lose all and even if you are professional, you still lose your money in any huge fast pump or dump

[escmys 15]

While it can increase your profit, it also carries the risk of losing funds quickly. This one of the most important disadvantages.

[Petatero 38]

It's literally the same risk when dealing with your own money, and the worst margin trade is when you lose profit.

[Mohmaza 46]

The currencies encrypted with marginalize and really risk of your money is really highly compared to traditional trading, it is safer and the risk of loss is very low.

[luthfi_2a 110]

Risks of Margin Trading

On the surface, the practice sounds pretty simple. However, in reality, margin trading is a sophisticated process that carries significant risk. Due to the heightened risks, it requires a special account referred to as a margin account. This is different from the ordinary cash account that most people are used to.

When purchasing stock, one can use either a margin or cash account. However, short sales can only be performed using margin accounts. In the same way, certain financial securities such as commodities and futures are also paid for using margin accounts.

[Yomose 3704]

The risk of crypto margin trading is the leveraging, the high the leverage the higher the risks of losing, although also the high the chance to gain more. But due to the fact that trading is risky generally, that people losing are more than people gaining so makes margin trading more risky. 

[Ndayebo8 0]

Beginners most not try margin trading, margin trading is for expert Traders only as it is contain a higher risks, but the profits are also higher. 

 

 

[Mubiflow 1771]

I think its  not a good ideas using this margin its a huge risk of paying twice of the money you lost, its better when you use your own finding in this sense if you loose you will know its your Money you won't have to worry about paying back

[Ridam 7455]

The profit and risk both are huge in margin Trading and as in Crypto the market has higher volatility the margin Trading would even increase it. You can use leverage and the profit will be times the leverage of growth of coin. But if the price goes down it will cause big loss and may empty our position.

[charingane 8]

margin account very difficult to trade, you must have technical analysis skills personally i don't use it

[Cleaner 2549]

On 11/19/2019 at 4:15 PM, Thekingcallme said:

There are many risks of losing money which is not yours and this means that the loss will be doubled and therefore I avoid trading on margin

@Thekingcallme...Trading basically means buying and selling.  Trading is basically a little risky.  However, those who have experience in trading can benefit by trading.  They easily cut the risk.  But if you want to trade on margin, I would say it is very risky.  Because you have to trade by borrowing from the broker.  If you lose out as a result, you will have a lot of debt.  So I think it would be better not to do margin trading.

[Onden 2098]

The risk of margin trading lies in the leverage, when you increase the trading leverage you will get a lot of profit, but on the other hand, if you experience losses, you will incur more and more losses because you have to pay back the loan you used for margin trading.

[cooperallch 349]

I don't really like to trade by the margin because it is very risky, investing alanvacado has many risks, the return is very good but I prefer not to take that risk

[Smallingcane012 344]

The risk of crypto margin trade it has a many skills or aptitude that involves so it depends the person that will take the risk if you can afford it you can take it as many as possible you wish to take.

[Ishtaiq hussain 210]

There is a risk in this too, like in other online apps, it happens and in the cryptocurrency also this relationship .But mostly what happens is that my sites and apps but not many gifts will work, so you have to learn English .

[Nonahassan 915]

One of the worst things that you can do at all is that the adventure may be very dangerous, because the profit will be high and the loss also, so it is necessary to prohibit in this matter so that you do not suffer a great loss 

[zeshan1122 654]

no matter which trading you chose there is only one risk and that is to lose your money and that is the highest risk ever so you need to take care of this and keep it in your mind

[Razan alikac 1899]

I do not advise you to trade on margin because there is a very high risk and loss of capital, but the loss doubles to money that you do not own and may fall into debts that you cannot bear. Good advice is to trade what you can afford to lose

[ZAIN13 237]

Margin trading is a dangerous thing in all financial markets, not only the crypto market,
It also achieves very high profits that can cause large losses.
You have to search for margin trading on the Internet in order to understand more before you trade.