SIMPLE GUIDE: Margin Trading for Huge Potential Profits with XRP, Bitcoin, Ethereum

Margin trading platform can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements and potentially grow capital faster.

Margin trading works by using a deposit, known as “margin,” to provide you with increased exposure. Essentially, you’re putting down a fraction of the full value of your trade (Bitcoin, Ethereum, XRP, Cardano, etc..) andthe leverage platform is providing you the rest.

BTC/USD trade example

For example, you want to buy 10 Bitcoins at a price of $10,000.

To open such trade with a traditional exchange, you would be required to pay 10 x $10,000 for a position of $100,000 (ignoring any commission or other charges). If the Bitcoin price goes up by 5%, your 10 Bitcoins are now worth $10,500 each.

If you choose to sell, then you’d have made a $5,000 profit from your original $100,000 investment.

1:100 leverage trade with PrimeXBT

Here you’d only have to pay 1% of your $100,000 position, or $1,000 to open such trade. If the Bitcoin price rises by 5%, you would still make the same profit of $5,000, but at a considerably reduced cost.

That means that profits can be hugely multiplied.