Margin trading is referred to as bet-making with “leverage” capability. Margin clearly defines the crypto amount entered into the leveraged position. These positions opened in two ways namely short and long. A short position is a place where you bet on a down price. A long position defines the place where you bet on the price value going up. 

Going on in-depth, when you buy a cryptocurrency for selling in the future when the price value rises means then it is termed a long-position. 

By borrowing a cryptocurrency with the current price and repurchasing when the price is down means, then it is termed as the short position. 

How does it work?

• Mainly involves borrowing money to make larger or more trades

• As per the liquidation price, the trading happens. When the market reaches the liquidation price, the crypto exchange will close its position. This is helpful for traders where they lose their own money only not their funds. 

• Trading by own funds means the liquidation price for a long position on an asset is zero. 

• Using margin trading by the investors allows them 

Crypto Exchanges Where You Trade:

• BitMEX

• Binance Futures

• Phemex

• Huobi Futures

• Bybit

• KuCoin Features

• PrimeXBT

• ApolloX

• Delta Exchange

Fees for Crypto Margin Trading:

There are 2 costs associated with margin trading in crypto. They are:

• Opening position fee

• Earning interest during borrowing coins. 

Benefits of Margin Trading:

• Large profits during the short span

• Traders attain bigger positions with less capital

• Provide a way to make winning trades

If you want to integrate a margin trading feature into your crypto exchange platform. You should find the best cryptocurrency exchange development company that has provided all types of crypto solutions.