What is leverage trading?

Leverage trading, or margin trading, is a system that allows trades to be executed when the amount traded exceeds the trader's total capital by many times. In this way, a trader invests only a small percentage of his funds into a trade; the exact value of this percentage depends on many factors, including the broker, platform and asset. These days, the system of margin trading is prevalent. 

Leverage usually refers to a trader's equity ratio to the total amount, while margin refers to the same ratio expressed as a percentage. 

Bitcoin trading platform
Bitcoin trading platform

What is the Bitcoins leveraged trading platform? 

Bitcoin is currently one of the most sought-after assets globally, growing beyond all previous expectations and gaining momentum over time.

But with this growing popularity comes an increasing demand for information. For example, it is necessary to know what is Bitcoin leverage trading, how to invest in the crypto market, Bitcoin trading with leverage, and navigate the crypto market correctly.

The Bitcoin leverage trading platform is a virtual space and, at the same time, an intermediary, where virtually anyone can buy, sell and perform other acceptable transactional activities with various instruments, including bitcoin leverage trading. 

Entering the Bitcoin market as a complete novice can be overwhelming and challenging at first. But over time, things get more accessible, and you begin to understand all the steps and processes involved in successfully navigating the industry.

If you want to do margin trading in New Zealand, it is worth choosing a reliable and secure Bitcoin trading platform with leverage that allows you to trade with the best leverage.

This step will give you access to an online trading platform that allows you to participate in active Bitcoin trading with leverage for a reasonably small commission.

What is Bitcoin leverage trading?

Leveraged trading, sometimes referred to as margin trading, is one of the most attractive online bitcoin tradings. With this trading method, traders can borrow funds from their crypto-broker to increase their buying power and potential returns.

In this way, even with little capital, traders can participate in the market and take full advantage of leverage to open more prominent positions in the bitcoin market.

Operate Bitcoins with leverage
Operate Bitcoins with leverage

Benefits of trading with leverage

The popularity of trading with leverage is due to the many advantages of this type of trading:

  • Minimization of invested capital. You do not have to pay the total price for the transaction, but only a tiny part of it. 
  • Availability of instruments. While trading some instruments is possible with a small starting capital, investments in more prestigious assets cost money. Leverage makes such investments more accessible: now, you do not need to go into the market for such assets. All you need to do is play on the exchange rate difference, securing the leverage.
  • More responsibility regarding risks. While margin trading allows you to enter the market with very little capital, it comes with a risk: the more you stand to gain on a trade, the more you stand to lose if the trade is unsuccessful. 

Trading with leverage educates the trader by constantly reminding him of the risk, so it will be quicker to learn how to handle stop-losses so as not to take a considerable loss.

Top rules for making profits when trading on leverage

  • Don't stress.

It is essential not to give in to your emotions when trading Bitcoin. Most traders lose money when they sell or buy in a panic. Bitcoin trading is very volatile, so you need to make a plan and stick to it. Don't let your emotions affect your trading plan.

  • Don't go all-in. 

It is imperative not to put too much of your money into the trade simultaneously. Why? Because if you take too much risk, you will find it difficult to control your emotions while trading. Do not hold more than 50% of your assets in a trade, and do not use more than 5% of your trading balance in trading. Learn to diversify, knowing that there is always a better crypto asset to buy at any time.

Margin trading at Bitcoins
Margin trading at Bitcoins
  • Learn from mistakes. 

All Bitcoin traders, even professionals, have lost their trades many times. The most important thing is to ALWAYS learn from your mistakes. Because if you do, your own mistakes will eventually make you a great trader.

  • Always use a Stop Loss. 

Please always put a stop loss at the beginning of the trade. Risk management is highly critical when trading. It is effortless to use stop losses on IQ Option.

Bitcoin leverage trading in New Zealand can become not just a new hobby for you but a new thing in life if you approach it consciously. 

What does the amount of leverage depend on?

As has become clear, the size of a transaction on the stock exchange has always been one of the most important parameters for an investor. It is usually done with one's own funds, but it is also possible to borrow from a broker.  

The ratio of own funds to borrowed funds on the stock exchange is called "leverage".

To use leverage, the broker needs collateral. On the stock exchange, this is securities and money. The amount of leverage depends not only on the size of the security. It depends on its liquidity, i.e. the ability to be quickly exchanged for money without a significant loss in value. There are three parameters for assessing the amount of leverage:

  • The liquidity of the securities in your portfolio (considered).
  • The client category assigned by the broker.
  • The liquidity of the asset you are about to purchase.

Based on the first and second parameters, the broker determines what percentage (risk rate) of the security's value he needs to guarantee. Ask your broker for the rate. 

The platform provides unique and affordable installation and configuration support to ensure that your platform is fully functional and ready to go as soon as possible. As a result, your platform will be activated and fully operational immediately. 

The higher the risk level, the more money you can borrow.

Bitcoin trading with leverage
Bitcoin trading with leverage

How do I start Bitcoin trading with leverage?

So, first, you need to register on the platform. 

Remember, the most important thing is the reliability of the platform! 

Registration usually doesn't take long. You need to enter some personal information to help confirm your identity. 

You can learn the basics of margin trading by watching a short instructional video on the website. It will help you get familiar with the site's interface to start learning how to trade faster. 

You can also use the demo account to learn how to trade without risking your own money. That is a great opportunity that we recommend you not miss out on. 

Make sure you always try to develop your skills. Everything from learning from your mistakes to reading books on technical analysis will help you understand when it's best to buy a cryptocurrency and when to sell it. 

How do I switch to a real or demo account?

You can switch accounts by clicking on your balance amount in the upper right corner. You will see your funds in the panel that opens: live account and demo account. If you click on one of the accounts, it will be shown as an active account so that you can trade on it.

What are e-wallets, and how do I use them?

E-wallets are an intermediary for the withdrawal of funds to a bank account. It's a quick, easy, secure, and efficient payment method. Wallets work in a similar way because they offer the same service for different countries. Some have the interface in Portuguese. You can work with Neteller, Skrill, Webmoney, Advcash and PerfectMoney. Their websites are easy to find on Google.

What is the best time to trade?

The best time to trade depends on the strategy you choose and other factors. We advise paying attention to the trading session timetable, as there are many dynamics in the prices of currency pairs and cryptocurrencies during the intersection of some sessions. 

You should also follow the news on the market, which can affect the movement of your chosen asset. Inexperienced traders, who do not read the information and do not understand the cause of price fluctuations, are not advised to trade at times when prices are very dynamic.

Bitcoin Leverage Trading platform
Bitcoin Leverage Trading platform

Summing up

Cryptocurrency margin trading is the same as buying and selling crypto-assets. The goal here is the same - to make money on price fluctuations (volatility).

Set weekly, monthly and even yearly goals. This will help you see the big picture and always focus on getting better. Because if you build slowly and aim for 5% per month, you will grow exponentially. This is because 5% month after month creates an exponential curve. So at the end of the day, your only problem will be figuring out whether you want a green or orange car.

Perhaps the most critical skill of a professional trader is knowing when NOT to trade. Because professional traders do NOT gamble, and if they're not sure about trade, they won't go for it. Only enter into trades that you have done your analysis on and are confident that the odds are realistically on your side. 

Believe in your strength and go for your goal!

The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose