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What is leverage trading?
Leverage trading is an investment technique that allows traders to increase their market exposure by using less crypto. A trader can take a big position by paying a small purchase price. Leverage trading is also referred to as margin trading. Margin is the amount of money that you need to open a trade. Hence Margin is used to open a leveraged trade.
How does leverage trading work?
If you want to trade huge amounts in cryptocurrency but don't have enough capital, you can leverage trading. This will help you increase your buying power and make more returns when the markets turn out as you speculated.
Although many traders use this feature, only a handful of them knows how it works. First, you need to open an account with a cryptocurrency exchange that supports Margin/leverage trading. Leverage It can be described using ratios such as 1:10, 1:15, and I:30. Alternatively, exchanges can describe it as 10X, 15X, 20X, and so on.
After creating your account, you can now deposit money and open a leveraged trade. You can buy crypto with crypto leverage trading if you speculate the market will go up or sell if you think the price will fall.
Leverage trading Example
Leverage trading allows you to amplify your potential returns anywhere from 5 to 100 times. If the market doesn't go as you predict, you can lose all your cryptocurrency. Let's assume you want to invest 15,000 using an exchange that allows you to trade at a ratio of 1:15 or simply 15X. With a 15X margin, you only need to invest 1000. But without leverage trading, you will be required to invest the full 15,000. In simple terms, leverage trading allows you to trade less to make an equal profit as someone investing proportionally large amounts.
ZB's 15X leverage trading features
If you are looking for the best cryptocurrency exchange for leverage trading, ZB might be the best option for you. It allows up to 15X leverage that will allow you to make big returns. Additionally, it's one of the largest and most secure exchanges in the world. ZB comes with many useful features that will help you execute your leverage trades swiftly. For example, it supports easy to lend and return, round-trip, and multi-currencies.
Leverage trading on ZB is easy. All you need to do is, sign up, deposit your assets then click trade. Here you can select Margin basic or Margin Pro. They are both leverage trading, and the only difference is that margin pro allows you to trade full screen using Kline.
Note:
Before you get started, it's important that we remind you that Leverage trading carries a huge risk potential. You can make high returns or losses in case the market turns against you. Remember, cryptocurrencies are highly volatile. Please risk only the amount of money that you can afford losing.