Margin trading. Where to start?

146 viewsTrading

Margin trading. Where to start?

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

Oshini Perera Answered question August 1, 2024
0

You say that you are aware of the risks but I feel the need to reiterate that you should consider the fact that you can not only lose ALL of your investment, but you can lose more than that. You can end up losing more than you invest, as in, you have to deposit more money into your account to pay your debt.

That being said, you are right that there is potential upside. I trade stocks on a margin all the time, and if you are very careful then it can be a powerful tool. With crypto, however, it seems very reckless and dangerous to me. Crypto is notoriously risky and hard to predict. By trading on a margin you are gambling with money that is not yours. Trading crypto (as opposed to holding long term) is luck based, and the vast majority of people lose. I would highly recommend not using a margin for crypto.

If you want to make real money consistently, trade stocks.

Oshini Perera Answered question August 1, 2024
0
You are viewing 1 out of 1 answers, click here to view all answers.