A common instance of margin trading is using a 10x leverage. Effectively, this means increasing your original order by a magnitude of ten . With a $1,000 investment, margin trading allows us to open a position as if we had $10,000. Therefore, any profit that we make is increased tenfold once the position is closed.
Read moreDoes crypto have leverage?
Depending on the crypto exchange you trade on, you could borrow up to 100 times your account balance . The amount of leverage is described as a ratio, such as 1:5 (5x), 1:10 (10x), or 1:20 (20x).
Read moreWhat is margin trading Huobi?
The limit of the loan, margin, and holding of the sub-account is 1/10 of that of the parent account. In Cross Margin trading, investors can use all tradable balance of mainstream cryptocurrencies as the margin, while a margin ceiling is applied to non-mainstream cryptocurrencies .
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