Enter your search term here Search New support ticket. Jul 06, · HitBTC Introduces Margin Trading on the Main Platform July 6, We are pleased to announce that we’ve added a margin trading tool, previously a core feature of Demo HitBTC, to the main platform, giving our users the opportunity to leverage the funds they already have. May 19, · What is margin trading? Margin trading is a high risk strategy and it can yield a huge profit if your predictions are correct. On the flipside you can lose more than your initial investment if it goes out of the money for you.
Margin trading hitbtcMargin trading : HitBTC
The longer you hold an investment the smaller the odds of making a profit get, due to the increasing charges. Especially great when trading cryptocurrencies and bitcoin due to their volatility.
Exchange Markets System Health. Exchange Markets Register Sign in. What is margin trading? Can I short sell? This collateral constitutes the margin.
This tool can be used for all the order types currently available with normal trading. The only thing different is the amount of potential profit, which increases due to the ratio of borrowed funds to the margin that is leveraged. Update : New pairs added to our new margin trading feature! Consequently, your profit here is units. And now suppose that you would like to use the maximum x10 leverage and borrow ETH from the margin lender, depositing the same units as collateral.
In this scenario, if the price of the latter increases by the same units, you will be able to sell your BTC for 14, ETH and gain a profit of 13, units — or ten times more than you would have made with only your initial investment. This also works when market prices drop.
The margin call level applies to the ratio of your account balance to the used margin, calculated in percent, at which your open positions are close to be liquidated by a broker. When this happens, users will receive a call notification in the form of a pop-up appearing in the browser and suggesting that they either close some of their positions or add some more funds to their margin.
But it is also crucial to constantly monitor the margin level yourself in order to be able to increase the amount of collateral and reduce liquidation risks in time. At margin call level no automatic liquidation occurs. Margin liquidation level is the level that initiates the automated liquidation process, meaning that it is no longer possible to prevent the liquidation once it has started.
In our case this occurs when the market price is equal to the liquidation price established by the exchange. PNL is the capital gains you have accumulated, measured in USD, between your deposit and your final payouts. PNL is credited to your balance as soon as you close your position and can be subsequently transferred to your trading account along with collateral funds.
The partial closing of an open trade will realize your PNL in proportion to the value of the relevant position, which users are enabled to both increase and decrease within the valid buying power range. All fees charged by a broker for the use of borrowed funds are in addition to the regular trading fees that vary based on the total volume of the trade.
Our margin fees are fixed, so they do not depend on the period of time during which your position is open, and offset independently once every eight hours from your margin account.