FAQ / Margin trading

Leverage

Last updated: January 5, 2019

What is leverage?

Leverage is an investment strategy of using borrowed money — specifically, the use of various financial instruments or borrowed capital — to increase the potential return of an investment.

As of now, Cryptology has 2 different leveraging options (5:1 and 10:1) for BTC/EUR. Margin trading can be done short (where you invest based on the price going down) or long (where you invest based on the price going up). Further, it can be used to speculate, to hedge, or to avoid having to keep your full balance on an exchange.