Hello everyone!

Today we are going to talk about margin trading.

What is this
What's so great about margin trading is that you can leverage your trade
and increase your profit by a lot. Let's start with simple example. So, say
you bought 1 BTC at 7k and sold it at 8k. What is your profit? $1000,
right! This can be a good profit, however if you were on margin x10, you
would made $10,000. Cause, remember - you borrowing x10 of your
money from exchange, so your position is 10 times larger. But how is that
working? Look, in a nutshell, the exchange that gives you money never
risk anything always securing its risk. When you on x10 leverage, your
actual (real) position is just 10% of that, the rest 90% belongs to
exchange. You just borrowed it for some time. Here, it is important to
understand that you not only increasing your position by x10, you also
increasing your risk x10. What does it mean? It means that if BTC will
make a 10% move in a opposite direction of your trade - you lose
everything. Cause, remember, you only own 10% of that position, so you
can lose only what is yours, and never borrowed money.
Example: BTC hit $10k and you believe that it needs a correction, so
you bet it will go down. So, you open a short (sell) position on x10
leverage. Bitcoin start dipping to 9500, you happy cause you already
+50% (cause 10k - 9500 = 500 (5% of 10k) x 10 = 50%) in profits, but all
of a sudden there are news coming out that China welcomes all crypto
and BTC bounces up to $11000 in a sick pump. Well, guess what
happens? You got liquidated. Cause $11000 is your liquidation price
(cause $11k = $10k - your entry + $1k is all you could risk i.e. $1k is 10%
x10 = 100%).
Another example: You feel like BTC reached bottom at $7k and the
only way for it is up now. Imagine, you have only 0,1 BTC available or
$700, which is not that much. So, even if BTC will make an incredible
pump to $10k you will only make $300. So, you open long (buy) position
using leverage to maximize your profit. You are doing x5 long. Which
means you borrow x5 of your money from exchange and now you have
0.5 BTC. When BTC reaches $10,000 - you make $1500 ($300 x 5). Or
$3000 if you used x10. Here, note that using x5 allows you to play it in a
more safe fashion and your margin of error is only 20%. So, if you open
long at $7000, BTC can dip down to $5600 and you still will be alright.
So, on x5 margin you have $1400 swing in a opposite direction before
you get liquidated.

Risk
ATTENTION!
You should always keep in mind that "margin trading" is the only way to
actually lose your money, and I mean really lose it. It is quite different
than what you used to feel about losing, cause we often say something
like "Damn, ever since i bought that TRX at 1400 sat - it is going down,
700 sat already! Man, I am losing money". Well, you not actually losing
money cause it is only temporary, and once TRX will start to pump and
comes back at 1400 - boom, you are not losing money anymore, you can
sell it at break even or wait till it goes up higher and sell at profit. So, you
never actually lost money. It was just temporary devaluation.
But margin trading is different, and since you borrow money - you have
to return them, if you the trade you got in is not going in your favour -
you lose money and exchange takes your collateral too (what you put
initially).
So, take it seriously and educate yourself first. Don't be lazy and instead
of watching netflix - go and spend couple of evenings and dive into
margin theory. Once you got the basics, you can start to trade with some
small amounts on x2, x3, x5 leverage. Sometimes, when you are very sure
about movement - even x10.

Live examples
Now, I will show you some real examples from today.
Long
So, I opened the long position at $7545 and closed it at $8280. That
would be about 9.8% of profit without any margin. But with margin, it is
98%
Short
I opened short (sell) position on BTC at $8090
Bitcoin is traded on $7670 (as I am writing this article) which is down by
-5.4%. Not much, but using x10 leverage I already made 54%. I don't
have any specific target, I am riding it while I am awake, will probably
close it when go to bed or set a market order in advance if I still see
$7100-7200 as a target which would give me around 100-110% of profit
since entry at $8090.
So, in 1 day I made around 140% of ROI on BTC alone.
What's cool is that margin allows you to earn money on the downside,
when market is crashing. That's why traders always make money, on the
pumps and on the dumps. There is no difference which way to trade. If
you put enough time and work into this and practise margin trading, you
can make money all the time and never worry about market cycles and
price movements. Just remember the risk management and rational
thinking, don't be too greedy as well.

Where I can use margin trading?

I am using Bitmex cause it is specifically designed for margin trading. It
has good big volume and a lot of tools needed for a margin trading. You
can use from x1 up to x100 leverage (suicide level). I recommend start
with x3 - x5 to get a feeling before going more (x10).
It has simple interface and supports a lot of languages. Registration is
fairly simply, deposits and withdrawals work perfectly!
You can use my ref.link and we both get 10% bonus (10% off trading fees
for the next 6 months) Go and register now!
https://www.bitmex.com/register/UAeDPE
Or you can use non ref link without bonus
https://www.bitmex.com
Also, there is margin trading on Bitfinex and couple of other exchanges,
but Bitmex and Bitfinex are the largest and most common used.
p.s. There is good way to practise if you don't feel you are ready for
margin here:
https://testnet.bitmex.com
This is sandbox of Bitmex and you can practise your skills without using
real money. Don't stay long there though, you should start to use real
bitmex and money in order to understand the risks and feel the game.
Make sure to spend some time and look around on Bitmex. It has a lot of
guides, references, explanations and good F.A.Q. section. You will not
understand a word at first, but give it a time and try again. Couple of
times reading should work and you will get the idea. Go to references tab
and you should see this on the left side:
Make sure to check this out! This is actually really interesting!

Theory (recommend to read)

Must read by Investopedia. That read alone can answer all of your
questions.
https://www.investopedia.com/university/margin/
Make sure to check all the chapters:
 2) Short article to read
https://economictimes.indiatimes.com/definition/margin-trading
3) About margin and risk
https://www.thebalance.com/margin-101-the-dangers-of-buying-stocks-
on-margin-356328
4) Margin guide by Bitfinex
https://www.thebalance.com/margin-101-the-dangers-of-buying-stocks-
on-margin-356328

Youtube Video I can Recommned

https://youtu.be/kBkRdnKT3gM

https://youtu.be/i4qqWeuYc8o

https://youtu.be/KMWRvDIpIng