<div class='text-justify'>
This week, the professor talked about all the details about Crypto Margin Trading and Crypto Leveraged Tokens Trading. He made important warnings about the advantageous and advantageous parts. I read the professor's course article and now I'm writing my homework.
[P](snappa.com)
>What Is Crypto Margin Trading?
As a result of the widespread use of cryptocurrencies, crypto investors started to have many trading opportunities. One of them is Margin trading.
To put it briefly, it is a trade in which users can make large volumes of transactions using leverage with small amounts of money. Leverage ratios vary from stock to market, but the draw is usually 2x, 3x, 5x, 10x, 25x, 50x. The higher the leverage ratio, the higher the risk. For example, a user can open a $ 250 trade using 5x leverage with $ 50. There are so-called long and short positions in margin trading. A long position means that the coin price will rise. The short position also means that the cryptocurrency price will decrease, and the trader is in anticipation of that direction.
I would like to explain the long and short position with 2 examples.
# Long position:
We are in a bullish era and we think ETH will increase. Let the ETH price be $ 3000. Thus, we need to open a long position. Because we think it will increase. The amount we will allocate for this is 1000 USDT. Suppose we set our leverage as 5x. In this case, we can open a transaction worth 5000 USDT (5x1000). If the ETH price increases by 20%, reaches $ 3600 and we exit the transaction, our gain will be 100% (5x20). So we will earn 1000 USDT.
**If it doesn't happen as expected;**
Let's assume you dropped 20% Ethereum to $ 2400. In this case, our loss would be 100% (5x20). We lose all our money.
# Short position
I think Ethereum will go down. We took a good look at the Ethereum chart and decided on this. Let the Ethereum price be again $ 3000. The amount we allocate is 1000 USDT and our leverage ratio is 10x. Since we think Ethereum will fall, we need to open a short position. Suppose the Ethereum price dropped 10% to $ 2700. If we close our trade, then our earnings will be 100% (10x 10%). Our net income would be 1000 USDT.
**If it doesn't happen as expected;**
Let's assume that the Ethereum price rose 10% to $ 3300. In this case, we would have a loss of 100% (10x 10%). We lose all our money.
We do not own any cryptocurrency that we trade in margin trading. In order to open a transaction, we need to pay some commission to the broker.
>How To Plan For Trading In Crypto Margin Trading.
(1) Margin trading is one of the most risky trading methods. When margin trading with cryptocurrencies, the risk increases gradually. We are faced with a double-sided risk. That's why we need to be very careful. We must make well-designed plans. Margin trading by inexperienced traders is somewhat equivalent to gambling.
(2) Margin trading requires a high level of experience. After getting a good grasp on spot trading, we should head towards this area. We must be familiar with all the details regarding margin trading.
(3) Margin trading rules (commission rates, contract leasing, etc.) vary from exchange to exchange. Before starting margin trading, we must have all the details about the stock market.
(4) We should prefer high volume exchanges.
(5) When trading margin, we must analyze the asset price thoroughly. We must use Stop Loss.
(6) We should open trades with small leverage. If things don't go the way we expected, we could lose all our money.
(7) Our positions should be short-term. Because we pay a commission to the broker during the time we open a transaction.
(8) We must open small amounts.
(9) Since the general trend is up in the bull period, we should mostly prefer the long position. Since the general trend is in a downward direction during the bear periods, we should prefer the short position.
>Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?
Many exchanges provide margin trading services. The most popular of them are:
**Binance**
Binance exchange has two types of modes, isolated and cross mode. For example, bitcoin margin transactions are Cross mode 3x, Isolated mode 10x.
**Poloniex**
The highest leverage offered by the Poloniex exchange is up to 100x. There are two modes, Isolated Margin and Initial Margin.
**BitMex**
BitMex exchange is one of the leading exchanges in margin trading. Both cross and isolated modes are available. We can open trades up to 100x.
**FTX**
FTX stock exchange is one of the most remarkable exchanges of the last period in margin transactions. We can open trades up to 101x.
**Huobi**
Leverage rates on Huobi stock exchange are low compared to other exchanges. We can open up to 5x trades at most.
>What is Leveraged Tokens Trading?
Cryptocurrencies are getting more widespread every day. As a result, there are new studies and new developments. After margin trading of cryptocurrencies, leveraged tokens were created. Leveraged tokens were originally designed by the FTX exchange. Currently, there are leveraged tokens of slightly different designs on the Binance stock exchange.
The main purpose of leveraged tokens is to eliminate that complexity in margin trading. It is to make it a more useful, more practical trade. In margin trading, we had to make a few complex transactions to be able to trade. In leveraged tokens, we can perform the same transaction in one transaction.
(Image taken from the Binance exchange)
Leveraged tokens can be found in the form of Up / Bull meaning increase and Down / Bear meaning decrease.
For example, on the Binance exchange, leveraged BNB tokens are listed as BNBUP / USDT, BNBUP / BUSD and BNBDOWN / USDT, BNBDOWN / BUSD.
Leveraged Bitcoin tokens on the FTX exchange
3X Short Bitcoin Token (Bear)
It is in the form of 3X Long Bitcoin Token (Bull).
Suppose you are trading on 3X Short Bitcoin Token (Bear). If the bitcoin price drops by 10%, your earnings will be 30%.
Suppose you are trading on 3X Long Bitcoin Token (Bull). If the bitcoin price increases by 20%, your earnings will be 60%.
In order to make a profit in spot trading, the asset we buy must increase. On the other hand, with leveraged tokens, we can profit from both falls and rises. All we have to do is make the right move.
We cannot withdraw Binance Leveraged tokens to our own wallets. FTX leveraged tokens are ERC20 based tokens. that's why we can deposit and withdraw to any ETH address.
>How To Plan For Trading In Leveraged Tokens?
Leveraged tokens are one of the risky types of trading, just like margin trading. There is double risk compared to spot trading. Once we have a good grasp of the functioning and the logic, we should practice leveraged token trading.
Since it is one of the risky trading types, we have to trade with small amount. We have to trade with all of the capital.
We should trade with as little leverage as possible.
When we are going to trade, we must act according to the bear or bull periods. The asset chart should be examined thoroughly, we should make the moves accordingly.
After we have made enough profit, we must terminate our trade. With a small fluctuation, we can lose our gain or even lose.
We have to trade by paying attention to the commissions received by the exchanges. We should choose exchanges with the lowest commission and the most reliable.
>Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?
There are many exchanges that trade leveraged tokens. However, Margin is less numerous than trading.
**Binance**
We can trade tokens with leverage from 1.25x to 4x on the Binance exchange.
**FTX**
We can trade up to 3x leveraged tokens on the FTX exchange.
**Pionex**
We can trade tokens with leverage of up to 2.2x - 4.8x on the Pionex exchange.
**Coinbase**
We can trade up to 3x leveraged tokens on the Coinbase exchange.
**Bittrex Global**
We can trade tokens with up to 3x leverage on the Bittrex Global exchange.
>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.).
In the previous lesson of the professor, we learned how to predict the price of crypto money.
# Steem Upward Price
(Tradingview Steem /Usdt chart)
Steem price is currently at $ 0.831. It's a pretty good price for a purchase because it's just above the support zone. Steem price must rise to $ 0.896 for a good increase. We will need strong purchases to break the resistance here. If strong buy occurs, Steem price breaks the resistance here and continues to rise rapidly .. There is resistance at $ 0.976. It may not be that easy to break the resistance here. I think Steem will go up as high as $ 0.976 in a week.
(Tradingview Steem/Usdt chart)
# Steem Down Price:
Steem price has been falling in recent days. Actually, we are in a suitable period to get Steem at the support price. The current price is $ 0.825. Steem support price is $ 0.812. If the Steem encounters a sell, the support would be broken and the Steem price could drop to another support price. The support price here is $ 0.664. The support here is very strong. I think the steem price will drop to $ 0.664 at most. If it falls to this level, the price will be quite suitable for purchase. Steem price will start to rise from now on.
# Conclusion
In this course, we learned about margin trading and leveraged token trading. The professor showed us how to make plans. He stated that it is one of the very risky trading methods. Thanks to him for this useful course article.
Cc:
@steemitblog
@stream4u
</div>