Blockchain's crypto exchange announced the launch of margin trading on its platform on October 12. As per the announcement, margin trading has been a highly sought-after feature by users globally. On that account, the platform wished to widen the convenience of its services through the component.
One hundred fifty nations globally will access this option, benefiting from its lucrative leverage. An additional advantage of the margin trading option is fees as low as 0.12% every day, holding a helpful card in maintaining its relevance among its competitors.
You can start your margin trading if you meet the criteria set by Blockchain.com. It is only available for users who are gold-verified and depending on the country you are in. Currently, the option is not present for the US, Japan, Canada, UK, Netherlands, France, Italy among others. More details are available when dealing with the margin trading agreement.
Increasing demand for margin trading
Since the onset of the crypto market boom, margin trading has become a necessary part of the crypto sector. It was not the case a few years ago, as the market was skeptical about derivatives. However, the growing crypto market can limit some retail investors wishing to get their hands on the vast cryptos.
That being said, margin trading options are a way to trade a bigger position while you have a lesser amount. If you wish to buy a certain crypto amount but have inadequate funds, margin trading will help you achieve that.
The steps you need to start your margin trading on Blockchain.com are straightforward, saving users the hassle of complex UIs. Signup and login to your account and choose margin on the trade ticket option.
It would be wise to do extensive research before beginning margin trading to avoid unpleasant outcomes. You can continue to select the leverage that suits your investment interests, between 2x or 5x. A point worth mentioning is higher leverage puts you in a riskier position than lower leverage.
You need to choose the type and amount of collateral you expect to use to open a position and place an order. Blockchain.com gives users a stop-loss option to minimize risks during margin trading, allowing the platform to close off unprofitable positions for you. Blockchain.com still insists that users exercise caution during their trade and understand what they will be putting on the line.