50x.com: margin trading on a cryptocurrency exchange

Margin trading on 50x.com (go online) is trading for money at interest, including cryptocurrencies on crypto exchanges. The advantages of such trading include the opportunity to earn a profit greater than the real state of the trader’s account allows. On the other hand, in case of incorrect calculations, the loss can also be much greater than the amount on the deposit.

Therefore, margin trading is a high-risk way of earning, especially on the cryptocurrency market, because cryptoassets are highly volatile. In order to trade profitably using credit funds, a trader must have wide experience in real effective trading, be able to analyze a chart, make correct price change forecasts, be able to assess risks and have a deposit sufficient to cover losses in case of unsuccessful transaction.

Trading Basics

The 50x.com crypto exchange does not have a separate terminal for margin trading, but it offers opportunities for trading on credit. Money on credit is provided by users of the platform, and the liquidity of loans is provided by clients who are lending on the exchange. Lending, is a way of cryptocurrency lending. Exchange customers lend their crypto-assets at an interest to merchants. And they profit from the resultant leveraged trades made by the borrowers.

In order to trade with leverage, a client must have margin collateral. This is the amount of money in an account that is treated as collateral against which the lender can lend. The collateral is the crypto-assets that the trader has on the 50x.com crypto exchange, but only in trust coins, which include BTC, LTC, ETH, USDT, TUSD, USDC.

How much crypto assets a user can borrow can be found out based on the amount contained in all the user’s accounts on the exchange. The maximum available leverage on the platform is up to 3 of the collateral amount. Compared to most other crypto exchanges, this is a relatively small leverage. As for the Margin Level – the percentage by which the amount in the trader’s accounts exceeds the funds that must be repaid to repay the loan – the exchange considers a Margin Level above 50% to be acceptable.

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This is not an arbitrary figure, it is controlled and if the level falls from 20% and below, the platform will start to forcibly repay the creditor automatically as part of the Margin Call mode. The trader must constantly monitor the level of collateral, as it allows you to assess the financial risk of the transaction with high accuracy. If the Margin Level approaches 30%, the user should be alert. If after the execution of the order the system detects a Margin Level below 30%, the order will be automatically canceled. This applies to Stop Loss and Trailing Stop limit orders.

How to trade?

To trade with leverage, you need to click “Loans” at the top of the exchange site, in the “Menu” section, and go to the “Borrow Funds” page. On the left side of the page is a loan origination service. Here the user selects the desired cryptocurrency.

The exchange specifies how much cryptocurrency a trader can take and how much he is recommended to take on credit. The recommended amount of assets is not the maximum or minimum, but the amount, which is calculated based on the client’s account status. In the line below, indicates the size of the proposed loan and the percentage at which it is issued. Loans are issued at a daily interest rate. In addition, the system warns that lenders can change the terms of the loan.

To get a loan, you need to have funds on deposit in trust currencies, so the system can evaluate the loan collateral and offer loan terms. If this condition is met, the trader can deposit the required amount, the system offers the interest rate, the minimum for the selected cryptocurrency. After that, it will be necessary to confirm the correctness of the entered data and consent to the proposed conditions, if they are suitable, with the code from the authenticator and click on the “Borrow…” button.

If the system approved the loan, the user’s balance will be replenished and the information window will show a message on successful loan disbursement. Information about this loan and all other open loans is entered in the tab “Current loans”. Besides, each loan has an “i” button, by pressing which you can see detailed information about this loan and change the maximum rate. Information about already repaid debts in the “History” tab. After receiving funds for trading, the client, by clicking on the “Trade” button, goes to the trading terminal, where he chooses a cryptocurrency to trade and begins to place orders, which are secured by credit funds. If the trading was successful, the client can repay the loan by clicking on the “Pay Back” button, which is placed in the line of the cryptocurrency in which the funds are borrowed.