Margin Trading at Currency.com

Margin trading on Currency.com (go online) or trading with leverage is practically trading on credit. The trader can make more profit than the size of the deposit allows. But the loss can also be more than the deposit allows. Margin Trading high risk, so you should first pay attention to education and training in the demo mode, but in any case, trading on credit is not recommended for beginners.

Order of leverage trading

At crypto exchange Currency trading with leverage is one of the main types of trading. To access it, you need to click on the appropriate button at the top left of the site and select the desired pair.

If you click “Buy”, a “Long” transaction will be opened, if you click “Sell”, a short position will be opened. In the mobile application in the “Portfolio” tab you need to select the section “Deals”, click “X” against the leverage transaction and then you will have the opportunity to buy or sell. When you open a short or long position, an information column appears on the right side of the trading terminal in the browser version, indicating the asset price, quantity, leverage size from 1x to 500x.

There is also a warning in the column about the obligatory installation of a guaranteed stop loss for margin trading. To see the information, you need to scroll down the column. The exchange will notify you if the stop loss is set too low. Automatically guaranteed stop-loss is placed at margin trading pairs BTC/USD and BTC/EUR with a leverage of 1:50 and 1:100. In the same column below you can set a take profit. Initially, the order is placed in market mode, but you can set a limit or stop order by clicking on “Buy when the price is” or “Sell when the price is”.

Guaranteed stop-loss is triggered when the exact price is reached, for this will be charged a commission, in this case 0.5%. The USD.cx wallet is specified as collateral for the leverage operation for this pair, virtual BTC wallets are also available, ETH, USDT, EUR.cx, GBP.cx, RUB.cx, BYN.cx. Wallet is selected in the drop-down menu “Wallet”, and in the mobile version this menu is called “Available”. The column shows the available number of assets, as a percentage.

Margin trading requires the ability to more accurately predict the price of the asset, for this you need to switch to the tab “Charts”, information about the conditions of leverage is also placed on the right side. In order to place an order, you will need to make a prepayment. The terms of the prepayment should be clarified by clicking on the “i” button.

Information about ongoing transactions, trades, Currency orders, is in the “Portfolio” tab, which is activated by clicking on the appropriate button on the left side of the trading terminal. In the mobile application, in the same tab, in addition to transactions, you can also set “Alerts”, on the far right side of the service. By the way, the size of the leverage, although in a limited range, can be set for a specific asset by default in the “Settings” section, subsection “Platform Settings”.

 

Features of trading with leverage

The main feature of leverage is that profits can be very high, as well as losses, but in the case of cryptocurrencies The strategy is complicated by the fact that they are very volatile, a sudden price movement can strongly and quickly affect the transaction. In part, a stop-loss and take-profit can protect against sudden market movements. On Currency Exchange, as well as on other trading platforms, it is mentioned that trading with leverage is not suitable for beginners, but from the practical point of view, it is equally important for a trader to have a relatively large deposit. At the same time, it is impossible to put all or even a considerable part of funds into a leverage deal, the risk is too high.

Leverage allows to work with amounts larger than what the trader has on his account, but this does not mean that he can trade with any amount of leverage. Currency.com rules allow trading at a 1:100 ratio, but depending on the price of a particular cryptocurrency and such a ratio may not be enough to place an order for leveraged funds. When margin trading, you need to keep track of the prepayment level. If it is above 100%, no additional funds need to be deposited. If the level is 80%, the client will receive a warning, “margin call”, and when the level reaches 50%, the trade will be closed automatically.

Commissions

Leverage trading operations are charged for the commission, which can be viewed by clicking the “i” button before the “Prepay” option in the information column, which appears after clicking on the “Buy” or “Sell” button. In the mobile version, such information appears when selecting a traded cryptoasset, at the bottom of the page. For opening and completing operations with cryptocurrencies in BTC/USD, BTC/EUR, ETH/USD, ETH/EUR pairs, a fee of 0.06% of the transaction volume is charged, for all other cryptocurrencies and DeFi the commission is 0.075%. The commission is charged taking into account the size of market inserts every 8 hours, starting from 00:00 UTC+3. The commission for leveraged transactions is added to the balance or deducted when an order is placed.