Margin Trading, also known as operating with leverage, is a tool that allows you to maximize your opportunities in the financial market. This strategy, available on CryptoMKT, offers you the ability to trade with more capital than you have, which can potentially increase your profits, but also carries a higher level of risk.

How does it work?

When you open a Margin Trading position, the exchange lends you additional funds to trade, allowing you to take larger positions than you could with your own balance. This can be beneficial if your predictions are correct, as it will multiply your winnings. However, you must remember that losses will also multiply if the market moves against you.

Margin Trading adapts to both bullish and bearish positions in the market. If you believe that the price of an asset will rise, you can open a long position with leverage. On the other hand, if you think the price will fall, you can open a short position. In both cases, the assets in your account act as collateral for the borrowed funds.

It is important to understand the level of risk involved in Margin Trading. CryptoMKT has measures to protect your funds and avoid excessive losses. If the risk level of your position reaches a certain threshold, the platform can force the liquidation of your assets to protect both users and the exchange.

If you are new to this type of trading, it is recommended that you familiarize yourself with the concepts and practice with small amounts before making larger trades.

You can check the risk level in Margin -> My Orders and Trades -> Positions and in the Risk column:

• 0% - 49%: You can still increase your position size.

• 50% - 79%: You cannot increase your position size any further.

• 80% - 99%: (margin call), you can only open orders to close the position or add more margin to reduce the risk of position liquidation.

• 100%: Your position is automatically liquidated.

Example

Let's see how Naim, a trader, uses Margin Trading on CryptoM:

1. Preparation and Analysis: Naim has $10,000 and observes that the price of BTC is at $9,500 and rising. Determined to go long (buy), he uses 12x leverage to maximize his profits. You decide to bet $5,000 as margin to open your position.

2. Position Opening: With $5,000 of margin, Naim can open a long position with a total value of $60,000 (12x your margin). This allows you to control a larger amount of BTC ($60,000 / $9,500 ≈ 6,316 BTC).

3. Target and Exit: Naim expects the BTC price to reach $9,650 for a profit of $949.40. If your prediction is correct, your ending balance would be $60,949.40.

4. Profit Scenario: If the trade is successful and the price reaches $9,650, Naim leaves with a profit of $949.40. Your initial margin of $5,000 has multiplied.

5. Loss Scenario: However, if the price drops by approximately $792, Naim will lose its entire $5,000 margin. CryptoMarket has measures to avoid debts greater than the amount initially invested.

It is essential to understand that Margin Trading has inherent risks. Although it offers the possibility of amplified profits, losses are also multiplied. It is crucial to have a solid strategy, set limits and perform proper risk management.

How to operate in Margin Trading?

Step 1: Log in to your CryptoMarket account and go to the Exchange PRO platform.

Step 2: Navigate to the Margin Trading Section Once in Exchange PRO, look for the Margin Trading section. You can find it in the upper right corner, where you will see a button with the "+-Margin" symbol. Click this button to access the Margin section:

Step 3: Transfer Funds to Margin Within the Margin section, you will have the option to transfer funds from your wallet or spot to your margin account. Select the amount you want to transfer and confirm the operation.

Step 4: Choose your Trading Pair and Leverage Once you have funds in your margin account, choose the trading pair you wish to trade and select the leverage level you prefer.

Now that the balance is at margin, you can carry out "long" operations waiting for the price to go up or "short" operations waiting for the price to go down using the different types of orders available .

You enter Margin and select the pair we want to trade in the INSTRUMENTS section.

On the side of each pair is a small blue box that is the leverage level and depending on the pair it can be up to x3, x5, x10 or x12.

What are the types of orders?
In Margin you can open Market, Limit or Scaled buy and sell orders.

MARKET ORDERS

A Market Order or Market Order involves buying or selling an asset at the current market price. This means that your order will be executed immediately at the best price available in the order book at that time. Market orders are fast and guaranteed to be executed, but the price at which they are executed may vary slightly.

Market Order con Stop Price
They are a valuable tool for buying or selling when the market reaches a specific price that you have previously defined. In this case, Your order will be executed at market price once the predefined price has been reached. It is important to note that stop orders do not lock your funds, but are activated once the market reaches the price you have set.

To use this feature, select the Market option if you want to buy or sell an asset at the market price. You will have the option to activate the Stop Price, where you can establish the specific price at which you want the purchase or sale to be executed. Additionally, you can define the amount of cryptocurrencies you want to have available for this transaction. Once you have reviewed the trade details and fees, simply click "Buy Market" or "Sell Market" to execute the order.

Stops do not reserve funds.

To buy or sell you must select Market if you want to buy or sell a specific instrument at the market price, you have the option of activating the Stop Price to specify the specific price at which you want the purchase to be made, you can also choose the amount of cryptocurrencies that you want to have available for this transaction and you will be informed of the cost of the operation and the rates, then just click on Buy Market and that's it!

LIMIT ORDERS

They are useful for planning your future operations. With these orders, you can set a price different from the market price at which you want your order to be executed in the future. When the price you have set is reached in the market, the order will be executed automatically. This allows you to control your inputs and outputs more precisely and strategically.

Limit Order:

A Limit Order involves establishing a price different from the market so that the order is executed when the price reaches that value. For a limit buy order, the limit price would be lower than the market price. For a limit sell order, the limit price would be higher than the market price. The funds required for a limit order are reserved in your account, and these orders are displayed in the order book.

Limit Order with Stop Price: A Stop Limit order involves creating a limit order at a specific price once a stop price is reached. Requires that both a stop order and a limit order be specified. These orders do not reserve funds and do not appear in the order book before being activated.

Limit Order with "Post-only": A "Post-only" limit order is only placed in the order book if it does not match any other existing order. If it matches an existing order, it is automatically cancelled. This type of order guarantees that no taker fees will be paid.

Limit with GTC (Good-Till-Cancelled): A GTC (Good-Till-Cancelled) order specifies that a limit order must remain open until it is fully executed or manually canceled. Most cryptocurrency platforms have this option by default.

Limit with IOC (Immediate-Or-Cancel): IOC orders must be completely executed immediately. If part of the order is not completed instantly, it is automatically cancelled.

Limit with FOK (Fill-Or-Kill): FOK orders must be filled immediately and completely, or not filled at all. If a FOK order is partially filled, it is canceled completely.

Limit with "Day Order": A "Day Order" order remains active until the end of the trading day.

Limit with GTD (Good-Till-Date): A GTD (Good-Till-Date) order allows you to buy or sell at a specific price until a predefined validity date. The order remains in effect until executed, expires or canceled until the validity date.

SCALED ORDERS

The scaled order tool is designed to simplify and improve the efficiency of your operations. This tool uses an algorithm to automate the creation of multiple limit orders in a user-defined price range. Here is a more detailed description of how they work and why they are useful:

Automation and Time Savings: Scaled orders allow you to automatically create a series of limit orders in a single step, instead of entering each order individually. This saves you time and effort, allowing you to focus more on your trading strategies.

Custom Price Range: You can define a price range within which you want to execute your orders. The algorithm will then distribute the limit orders in that price range evenly.

Diversification and Distribution: The Scaled tool also gives you control over the diversification and distribution of your orders in the price range. This is useful for strategically distributing your operations and mitigating risk.

Example of Use: Imagine that you want to buy a cryptocurrency as its price decreases. Instead of manually entering multiple limit orders at different prices, you can use Scaled orders to automate this process. You simply define the price range and the total amount you want to invest, and the tool will create limit orders in the specified range.

Flexibility: Although Scaled orders are automated, you still have the flexibility to adjust the parameters according to your strategy at any time.

What are positions, active orders and completed orders?

Positions in Margin Trading refer to the trades that you have opened and that are still in progress. In the Positions section, you can see the details of your open positions, including the cryptocurrency involved, the position size, the entry price, the leverage used, the margin used and the associated risk. You can also monitor the performance and status of your positions from this section.

Active Orders: Active orders are market orders that you have placed but have not yet been executed. These orders remain on hold in the order book until the specified conditions are met. These can be limit orders or other special orders that you have set up. You can view your active orders in the corresponding section and, if necessary, cancel them at any time free of charge.

Completed Orders: Completed orders are the orders that you have placed and that have already been completely executed. These orders are no longer active and have served their purpose. You can review your completed orders in the Trading History section to get a complete record of all your past transactions.

Transfer Margin Balance to Wallet or Spot: If you want to transfer the balance you have reserved in your Margin Trading account back to your wallet or spot account (regular trading), you can do so by following these steps:

1. Log in to Exchange PRO and go to the "Account" section.

2. Click the "+-Margin" button in the upper right corner.

3. Then select the “Recover Margin” option.

4. Choose the cryptocurrency you want to transfer the balance of.

5. Enter the amount you want to transfer.

6. Press the "Transfer" button to complete the transfer.

Remember that by transferring Margin balance to Wallet or Spot, you will release the funds reserved in your open positions and you will be able to use them again in other operations or for withdrawals.