Hello Everyone,
I deem it a great honor participating in this week homework task by prof @stream4u. the detailed lesson was very comprehensive.
>What Is Crypto Margin Trading?
[source](https://www.skalex.io/wp-content/uploads/2020/10/margintrading.png)
**Crypto Margin Trading:** it is an advance crypto type of investment in which brokers and Exchanges who offer margin trading allow traders to have access to huge start-up capital by lending them according to their initial investment. This way traders make profits their initial capital could not have given them. It is a trading option can multiply both profit and loss.
This type of investment comes with a price, which can either be a huge profit or a huge loss. Margin trading often maximize both profit and loss by 2×, 3×, 5× and so on depending on the Broker or Exchange. This explained that, if a trader with initial capital of $50 can gain a profit of $150 as well can suffer a loss of $150 if the margin offered is 3×.
>How To Plan For Trading In Crypto Margin Trading.
Margin trading is very risky since it is affected by both profit and loss. For instant, if you trade with a margin of 5× and market price of coins fluctuate, it is either you gain a profit of 5× or suffer a loss of 5×. Due to this 50-50 chance, you need to plan on your margin trade before getting into crypto investment. Below some procedures to follow when planning for margin trading.
- Use technical analysis when buying/selling: from the chart graph, when the technical study shows support level you buy and when it shows resistance level you sell.
- You must always prepare for the risk involved.
- Always trade with an amount you are willing to risk. You can trade with 15% of your income and use the rest for other endeavours.
- You need to very clear about your entry and squire off points since greediness can cause a great loss.
- Chose exchanges which has relatively low fees in order to pay interest on profit after a trade.
- Knowledge on price forecasting is very important when it comes to margin trading.
- Use short timeframe since currencies price fluctuate frequently. Margin trading is good for intraday traders.
>Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?
## Crypto Exchanges name that provide Margin Trading and what Margin they provide
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There are a lot of exchange platforms that offer margin trading and below are some and the margin they offer.
Name of Exchanges platforms that offer Margin Trade | Margin they offer
----------------------------------------- | --------------------------------
BINANCCE | 5×
POLONIEX | 2.5×
HUOBI | 3×
KRAKEN | 50×
BITMEX | 200×
FXT | 100×
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>What Is Leveraged Tokens Trading?
**Leverage tokens Trading:** in this type of investment, investors don’t actually own the asset, it is given as a contract by a Broker or an Exchange platform. Traders have the ability to increase their trading position by borrowing funds from brokers or exchange platforms.
Leverage token trading greatly depend on how good you make your forecast. Price forecasting aid in predicting the price of an asset for a given period of time. If a market price go in line with your prediction, you make great profit and also if it turns out differently you suffer a great loss. Traders trade against price direction but not the actual price of the asset.
For instance, if a trader initialized a $50 capital at margin of 4×, when market trend favours his prediction then the initial capital is multiply by 4×, which will be $200.
>How To Plan For Trading In Leveraged Tokens?
As an inverstor you need to plan on your leverage token trading before jumping into the market to avoid future loss, below are some of my plans.
- Study the market trend of the underlying asset you wish to trade as profit and loss depends on predictions.
- You need knowledge about price forecasting since leverage token trading involves it a lot.
- Look out for brokers or exchange platform with low trading fees so as to reduce interest paid at the end of trade when profit or loss is made.
- Percentage of money to be invested should be reasonable so as to bear risk when loss is made.
- We should exit the trade when enough profit is made since price of assets fluctuates and can cause great loss.
- As a beginner you should trade with a little leverage as possible.
- Make a proper technical analysis before moving into any leverage token trading so as to predict the direction of an underlying asset.
>Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?
Exchanges Name That Provide Leveraged Tokens Service | Margin They Provide In Leveraged Tokens
------------------------------------ | --------------------
HEDGE | 1×
BEAR | 3×
BULL | 3×
HALF | 0.5×
BITMAX | 3×
HUOBIT | 5×
KUCoin | 10×
KRAKEN | 5×
>Price Forcast For Crypto Assets XXXXXX. (This is similar question from last course, take any Crypto Assets Chart graph, as per its current price and its market trend predict its future price for only next week, what will be its future price for next 1 week.You can predict for any direction up or down but explain it properly on what basis you have predicted the price. What will be the possible low level and high level fornext week.).
## Price Forecasting of BTC from BTC/USDT Chart
From the previous lesson, we have learned on how to make a forecast on an asset and now im using that knowledge to predict the direction of BTC in the following week.
From last week to this week BTC has been through a lot of ups and downs. moving from the range $54,834.34 to $58,385.34 this is as a result of traders existing the market and traders coming to the market keeping the chart pattern unstable.
from the graph above we can see the price breaking through the resistance into support. it again tried breaking through the second resistance but short frame traders who had made enough profit left the market, bringing down the value. so it came back down to hit the support and then up again, which was able to break through but then it started to move in higher and lows between the two resistance.
In my own view, I will say the price of BTC for next one week will go higher. When the market goes in higher lows there is the possibility of the price shooting up to break through the resistance. because at this point, traders will invest and that will shoot the price up for next week.
## CONCLUSION
As an investor you need to know a lot about price forecasting before you involve yourself into margin trading. also chose a short time frame to avoid future loss.
***Thanks for your Attention***