FAQ / Margin trading

Margin Trading Guide

Last updated: November 22, 2018

How to Trade on Margin on Cryptology

Web Version – www.cryptology.com

Once you get interested in Margin Trading, you might have signed up and gone through the verification process. If not, use a step-by-step How to Get Verified guide and come back. So let’s start trading on margin!

Step 1: Click on the “Margin” tab to start

Step 2: Open a long or short position in Position Entry section. Choose Long position to buy an asset with the expectation that it will rise in value. But remember that Margin Trading is related with high risks so be accurate with your investment decisions.

Step 3: Enter your Margin value and choose the leverage value. Margin means the amount of money you are ready to risk. Leverage shows how much your position will be multiplied. As you see, the value of your position has increased.

Step 4: Pay attention to the Daily Rate and Trading Fee to realize your costs.

Open Price is the price at which your position will be opened. Daily Rate shows the daily fee you pay for your leverage. Hourly Rate shows the hourly fee. Trading Fee is a Cryptology commission. Depending on the market sentiment choose long or short position to open. Go short when you want to make money on prices decrease.

In the example below you go long, so you expect the asset to rise in price.

Step 5: Click on the “Open” button to proceed. Here’s a confirmation with all the parameters specified. Click on the “Open” button to confirm the action.

Step 6: See all opened positions with the details in Open section. To close your position click on the “Close” button.

Step 7: You may also edit your position parameters by choosing “Edit” option, that is, Take Profit or Stop Loss. Choose the first if you need the position to close after reaching the profit you want. Choose the second if you want to limit your losses. If you are a beginner, Cryptology recommends you to use these options to avoid heavy losses.

Step 8: To find closed positions, see History section

Risk Reminder:
Investing in digital assets supposes high risks because of large price fluctuations. Before investing, please be aware of all the risks of investing in digital assets and be careful with your investment decisions.

Mobile Version

Step 1: Click on the “Margin Trading” tab to start.

Step 2: Open a long or short position in Position Entry section. Choose Long Position to buy an asset with the expectation that it will rise in value. But remember that Margin Trading is related with high risks so be accurate with your investment decisions.

Enter your Margin value and choose the leverage value. Margin means the amount of money you are ready to risk. Leverage shows how much your position will be multiplied. As you see the Value of your position has increased. Click on the “Apply” button to proceed. Here’s a confirmation with all the parameters specified. Click on the “Open Position” button to confirm the action.

Step 3: Pay attention to Daily Rate and Trading Fee to realise your costs. Open Price is the price at which your position will be opened. Daily Rate shows the daily fee you pay for your leverage. Hourly Rate shows the hourly fee. Trading Fee is a Cryptology commission. Depending on the market sentiment choose long or short position to open. Go short when you want to make money on prices decrease. If you go long, then you expect the asset to rise in price.

Step 4: See all opened positions with the details in Open section. To close your position click on the “Close Position” button.

Step 5: You may also edit your position parameters by setting Take Profit or Stop Loss. Choose the first if you need the position to close after reaching the profit you want. Choose the second if you want to limit your losses. If you are a beginner, Cryptology recommends you to use these options to avoid heavy losses.

Step 6: To find closed positions, see History section.

Risk Reminder:
Investing in digital assets supposes high risks because of large price fluctuations. Before investing, please be aware of all the risks of investing in digital assets and be careful with your investment decisions.

Glossary

Current Price - A current price, also known as the market value, is the price at which assets are currently being sold in the market.

Daily Rate - The price/cost of a borrowing funds option provided for an entire workday.

Hourly Rate - Hourly Rate shows the hourly fee you pay for your leverage, that is, borrowed funds.

Leverage - Refers to taking on debt to increase the trade volume.

Long Position - Buying an asset with the expectation it will rise in value.

Margin - The difference between the total value of assets held in an investor's account and the loan amount.

Margin Trading - Trading on margin involves borrowing money to perform trades of a higher value.

Open Price - Is the price at which your position will be opened.

Open a Position - Means to take a short/long position.

Profit & Loss - Revenues, costs and expenses within a specified period.

Short Position - Selling first and then buying later. The trader's expectation is that the price will drop.

Stop Loss - An order placed to sell an asset when it reaches a certain price for the purpose to limit the loss.

Take Profit - or target price is an order that you set to close your position or trade when price reaches a specified price level in profit.

Trading Fee - Fee per trade charged by Cryptology.