Margin trading at Blockchain.com offers a range of benefits that can enhance your trading experience. By using leverage, you can amplify your buying and selling power, potentially increasing your profits and optimizing your investment capital. However, it's essential to understand the risks involved and practice responsible risk management to make the most of margin trading.
Let's explore why trading on margin with us might be the right choice for you:
Increased buying power and profit potential
Margin trading on the Blockchain.com Exchange enables you to increase your profit potential through leverage, or increased buying and selling power, on your trades.
Using the increased buying or selling power from your existing balance can lead to potentially greater gains as well as greater losses from your trades. Learn more about how to manage the risks of margin.
Greater flexibility in fund management
With this approach, you can stretch your investment capital further and diversify your trading portfolio more effectively. Unlike spot trading, where you need to have the entire trade balance in the currency you want to buy, margin trading allows you to leverage your existing capital and take larger positions in the market.
Example: you have $1,000 USD of investment capital, and you want to buy BTC and ETH.
In spot trading, you would need to split the $1,000 USD between BTC and ETH, investing a portion in each.
However, with margin trading and 5X leverage, you can put up only $200 as collateral and purchase $1,000 worth of BTC or ETH. This means you can access a larger amount of your desired cryptocurrency with just a fraction of your investment upfront.
Competitive and transparent recurring fee rate
Blockchain Exchange’s margin recurring fee rate is among the lowest in the industry at 0.02% every 4 hours. Recurring fees are disclosed and automatically deducted in the unrealized P&L. With transparency and competitive rates, you can stay focused on your trades without worrying about hidden costs.
Diverse pairs and collateral options
We currently support 5X margin trading on BTC-USD, BTC-USDT, ETH-USD, ETH-USDT, DOT-USD, LTC-USD, BCH-USD, and XLM-USD trading pairs .
Moreover, you have the flexibility to use any of these currencies as margin collateral, providing you with a diverse range of trading options.
Lower risk with Isolated Margin mode
With Isolated Margin mode, you gain greater control over managing individual positions. In times when the market moves against your favor, you'll only risk the collateral amount associated with your current position. The rest of your Exchange balance remains safe from liquidation, reducing the overall risk of your trades.
When considering trading on margin, you should determine how the use of margin fits your own investment philosophy. It is important that you fully understand the risks, rules, and requirements involved in trading digital assets on margin. Margin trading increases your level of market risk. You may lose some or all of the collateral you post in connection with a margin trade. Blockchain.com may initiate the sale of digital assets in your account, without contacting you, to meet a margin call. You are not entitled to an extension of time on a margin call. Further details are set out in the Margin user agreement.