What is leverage trading?

What is leverage trading?

Category: General

Leverage trading also known as “Margin Trading” involves entering trades while ‘borrowing’ the exchanges/brokers funds to increase potential returns. For example; you enter a trade with 10BTC as the value and use a leverage of 10x, the position will be open with a value of 100BTC. This means that should the market move go in your favour you would have 10x the returns, however, should the move happen against you your losses would be 10x the amount of your entry. Leverage trading can be seen as a ‘double edged sword’ making it risky and complicated to use, but at Kahin software we can make it simple and easy to understand.

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