Leverage trading enables a crypto trader to borrow funds in order to buy and sell and gain more returns on your crypto transaction. Leverage trading is also known as margin trading. Through leverage trading, you can make transaction way over than your current account balance, which results in more profit (and loss) and higher risks.
How To Leverage Trade on BitMex?
Make an account on the website of BitMex, which is pretty easy. Enter your email address and type in your password. You will be emailed a verification link to prove your identity. Once that is done you can log into your account. And before that, you might want to enable two-factor authentication for extra security.
Now id the time to deposit funds to your account. Click the account tab and then “Deposit” button – copy your wallet’s address, which can be used to make the deposits. Now, to start trading, click on the link “Trade” and then select the type of cryptocurrency you want to deal in. You have the choice of choosing from Bitcoin, Litecoin, Ripple, etc. On the left hand side, you can select the type of order and the amount with which you want to buy any cryptocurrency.
Below the order box, you will find the slider, which can be used to set the value for leverage. This can be from 1X – 10X.
Beofre you finalize things, it is better to review your selection carefully. The amount in the “Quantity” box will show your current position. And because we are trading under leverage, the amount you will see in this box will be higher than your actual amount at risk. The “Cost” portion in the review window will show you the exact amount (in crypto) that you may lose if the market moves against you. “Order Value” represents your position in the crypto.
If you think the prices are going to rise, click “Buy Market” and if you think the market will show a downward trend, click “Sell Market”. Here, a confirmation screen will pop up showing you details like level of leverage, cost, order value, etc. Go through the details as this will be the last point where you could still make changes to your decision.
Leverage trading can be a risky business, especially if you’re new to the market. We recommend all our readers to go through the risk involved, analyze and read as much material as you can before you buy or sell.