One of the best ways to make more profits in the stock market is by trading with leverage. Also known as margin trading, the process is simple and complex at the same time. Making use of the volatility in the market, experienced traders choose margin trading to get more profits by trading borrowed funds during a session.
It is quite popular in the equity market, and hence it comes as no surprise that the same has been adopted in the crypto market as well. The traders have to create a margin trading exchange account and deposit an initial amount with the exchange. Then they begin leverage trading by deciding the leverage amount (ratio). If the trader chooses to open the trade with 100x leverage, it means that the person can multiply the profits by 100 times.
At the same time, the trader is exposed to increased risk as the crypto markets are highly volatile. The prices can change any time, and the trader may or may not close the session with profits. So, does that mean that the losses will also be multiplied?
And this is the main reason why so many traders prefer to get into margin trading and try their chances. But margin trading is not possible on all crypto exchanges. Companies build and develop an exclusive crypto exchange with margin trading to facilitate experienced and interested traders to take part in the process.