Cryptocurrency Exchanges with Margin Trading | Top 12 best cryptocurrency exchanges for leveraged cryptocurrency trading
Margin trading – leveraged trading. In theory, it allows you to make huge profits, but if you fail, you can lose more than planned. Trading on margin is suitable for professionals who want to discover new facets of stock trading. Today, most crypto exchanges offer a service of this kind and the editorial staff of Btcnewsweb.com will consider the most popular and liquid ones.
The best cryptocurrency exchanges with margin trading:
|#||Overview||Website||Leverage||Markets||Verification||Commission||Russian language||Trading volume 24h|
|Binance Futures Exchange||binance.com/ru/futures/||up to x125||Futures||no||taker from 0.017 to 0.04%, maker from 0 to 0.02%||yes||$2 520 million|
|Binance Exchange||binance.com||up to x125||Spot||no||0,1 %||yes||$867 million|
|Bybit Exchange||bybit.com||up to x100||Futures||no||taker 0.0750%; maker -0.0250%||yes||$1056 million|
|Exchange Currency.com||currency.com||up to x50||Futures||yes||0,2 %||yes||$65 million|
|BitMex Exchange||bitmex.com||up to x100||Futures||yes||perpetual contracts: taker 0.0750%; maker -0.0250%||yes||$2146 million|
|FTX Exchange||https://ftx.com/||up to x110||Futures, options, indices and others||no||temeiker from 0.02%, taker from 0.07%||yes||$122 million|
|EXMO Margin Exchange||exmo.me||up to x3||Spot||Yes||taker: 0.05%; maker: 0%||yes||$19,98 million|
|PrimeXBT||primexbt.com||up to x100||Futures||no||0,05 %||yes||$228 million|
|BitForex Exchange||bitforex.com||up to x100||Futures||no||maker’s commission: 0.04%; taker: 0.06%.||yes||$1 082 million|
|OKEx Exchange||okex.com||up to x120||Futures, spot||no||taker from 0.050, maker from 0.020%||yes||$3,577 million|
|Deribit exchange||deribit.com||x100||Futures||no||perpetual contracts BTC: taker 0.0750%; maker -0.0250%; ETH: maker 0.02%; taker 0.05%||yes||$378 million|
- 1 What is margin trading
- 2 Best exchanges for leveraged cryptocurrency margin trading
- 3 1. BitMEX Exchange
- 4 2. Currency Exchange
- 5 3. Bybit Exchange
- 6 4. Prime XBT Exchange
- 7 5. BitMax Exchange
- 8 6. Gate Exchange
- 9 7. Deribit exchange
- 10 8. Bibox Exchange
- 11 9. Huobi Exchange
- 12 10. Bitfinex Exchange
- 13 11. Poloniex Exchange
- 14 12. OKEX Exchange
- 15 13. Binance Exchange
- 16 14. FTX Exchange
- 17 15. EXMO exchange
- 18 How to choose a cryptocurrency exchange for margin trading: basic criteria
- 19 Features of margin trading. Basic trading rules
- 20 Advantages and Disadvantages of Leveraged Trading
What is margin trading
The essence of margin trading is the purchase of cryptocurrency in an amount exceeding the one that is on the user’s balance. Roughly the same thing happens when trading stocks.
For example, it is decided to invest $ 200, plus borrow $ 800 to buy bitcoins for $ 1000. In this case, the leverage is 4: 1, and the initial margin is $ 200 – these are the funds that need to be deposited to purchase cryptocurrency.
With the help of a margin trade, you can open leveraged positions as purchasing opportunities increase. Meanwhile, lenders receive interest on loans issued.
The situation seems like a win-win, but even when trading on margin, something can go wrong. And in any case, you will have to return the $ 800 borrowed, plus interest. Due to the high volatility of cryptocurrencies, the scheme is quite risky. It is difficult to predict the movement of the market, so here one risk is superimposed on another.
Best exchanges for leveraged cryptocurrency margin trading
List of top 12 major cryptocurrency exchanges that provide platforms for margin trading:
1. BitMEX Exchange
BitMEX has gained great popularity in a relatively short period of time precisely due to conveniently arranged margin trading. Within the framework of the site, innovative algorithms are used, and economists and professional developers take part in its improvement. Perpetual contracts and futures are available for trading.
To get started on BitMEX, an email confirmation is enough. But if you want to protect your funds, you can also use the two-factor authentication function.
At the moment, the exchange provides the opportunity to trade with a margin of eight cryptocurrencies. The leverage for each of them is different:
- Bitcoin – 100x.
- Bitcoin Cash – 20x.
- Cardano – 20x.
- Ethereum – 50x.
- Litecoin – 33x.
- Ripple – 20x.
- EOS – 20x.
- TRON – 20x.
2. Currency Exchange
The Currency exchange allows you to use a multiplier of up to 5x, that is, having 0.1 BTC, you can start trading 0.5 BTC. The leverage and volume of the order are specified in the process of placing an order. You should also take into account the commission.
Take-profit and stop-loss functions will help protect against risks. There is also such a tool as margin call, which will be described in more detail below. With margin trading, the risk is always greater than with normal trading.
3. Bybit Exchange
Bybit exchange provides up to 100x leverage. There are restrictions on the initial margin – the amount of investment required to open a position.
At Bybit, the initial margin is calculated by multiplying the order amount by the initial margin rate based on the selected leverage. For example, if a user uses 100x leverage and creates an order of $ 100, the initial margin will be $ 1. The site also helps to reduce risks by setting risk limits for trading with leverage.
4. Prime XBT Exchange
Cryptocurrency exchange Prime XBT is initially focused specifically on margin trading and provides an opportunity to use leverage up to 100x. Five currency pairs are offered:
- BTC / USD.
- EOS / USD.
- ETH / USD.
- XRP / USD.
- LTC / USD.
You cannot adjust the shoulder size here. Only changing the order size is allowed; for very large orders, the coefficient is automatically reduced.
5. BitMax Exchange
BitMax gives its users the ability to trade with up to 10x leverage. Residents of the United States are an exception and the feature is not available for them. To start trading, you must first transfer part of the funds to a separate margin account. The market interface is almost indistinguishable from normal trading.
To start trading, you need to provide a collateral, this procedure is automated as follows: as soon as the user transfers funds to the margin account, the balances on his main account become collateral. The Margin Account uses only the exchange’s own token, BTMX.
6. Gate Exchange
Gate.io, like some other crypto-exchanges, provides three types of trading – regular, margin and contract trading. Classic margin trading here starts from $ 100. The maximum leverage is 3x, regardless of the currency.
You need to return the borrowed tokens within 10-30 days, depending on the terms of the loan. In case of delay, the assets are automatically blocked by the exchange.
7. Deribit exchange
Deribit is a lot like BitMEX. Allows you to trade ETH / USD with 50x leverage and perpetual futures, as well as options (non-binary).
Verification is not required, an email confirmation is enough to work. You can deposit and withdraw money only in BTC. Users like the exchange due to its competent technical device and user-friendly interface. Traders note that it is easy to trade here even during strong market movements.
8. Bibox Exchange
Bibox is not a very large and well-known exchange. Therefore, it is especially commendable that she also decided to keep up with top competitors and introduced the possibility of margin trading a year ago. To trade with leverage, the user must use a separate account linked to the same account.
The coefficient here is small – 3x. Borrowers have the right to repay their loans ahead of schedule, but lenders, in turn, cannot withdraw them ahead of schedule.
9. Huobi Exchange
Huobi Pro is a well-known multilingual cryptocurrency exchange that has been operating since 2013. To register on it, you will definitely need to attach an email address and verify your identity (sometimes the process takes a couple of days).
Margin trading with multiple currencies is supported. For Bitcoin, the maximum leverage is x5.
10. Bitfinex Exchange
Bitfinex provides 3.3x leverage. For example, if you have $ 10, then you can trade for $ 33. Trading itself is generally the same as usual, but in addition, the screen displays information about account balances, margin and collateral. In the balance section, you can transfer funds between the margin and regular accounts.
At the moment of opening a position, the user can apply for financing himself, choose the amount he needs, the loan period, and also the interest rate. Or you can trust the system, it will select a trader who is currently providing the most favorable conditions.
11. Poloniex Exchange
The Poloniex exchange is one of the pioneers in the cryptosphere, operating since 2014. After registration, you must go through identity confirmation in order to fully use the site. We recommend that you always protect access to your funds with two-factor authentication.
Leverage up to 2.5x can be used on Poloniex by applying it to the following cryptocurrencies:
- Bitcoin Cash ABC.
12. OKEX Exchange
According to the standard scheme, the user can borrow money, while pledging to return it on time. The exchange has recently increased its leverage. Previously, it was 3x, now 5x, which opens up more investment opportunities.
13. Binance Exchange
In order to trade on Binance on margin, you need to verify your identity and deposit funds into your account. Based on the money on the balance sheet, the exchange automatically calculates the possible credit limit. Leverage – up to 125x.
Go to “Wallet” -> “Margin Wallet” to find out information about:
- Available balance in BTC / Fiat.
- General congestion at the moment.
- Margin level and risk.
- Profit and loss ratios for a day, a week, a month, or all the time.
- Balance sheet and open positions for each specific asset.
The yellow Borrow button on this page allows you to borrow assets for trading. A window will open where you should select the cryptocurrency and its amount, familiarize yourself with the information about the interest rate and the maximum possible loan amount. After that, click “Confirm Loan” and you can start trading.
14. FTX Exchange
To activate margin trading on the FTX crypto exchange, go to the settings page or the borrowing page. After activation, the account will automatically try to borrow spot assets that are not enough to complete the transaction. If you disable the function, the system will instead convert collateral to replenish balances where there are not enough assets. Leverage – up to 110x.
All coins that are traded on the FTX spot markets and on the perpetual and quarterly futures markets can be used as leveraged assets; tokenized shares cannot be leveraged assets. Every hour, lenders (those who lend assets) receive payments and borrowers pay expenses according to the interest rate. All loan rates are valid for one hour; they are redefined every 60 minutes.
15. EXMO exchange
Trading with leverage on the EXMO exchange is available only after account verification. Leverage – up to 3x. Once you have verified your identity on the spot platform, you need to transfer funds to a margin account.
- Go to the EXMO Margin platform (“Trades” -> “Margin trades”).
- Hover over the “Balance” button and select the “Deposit” option.
- Accept the agreement regarding the transfer of funds. Enter the top-up amount.
EXMO Margin operates on an isolated margin principle. This means the following: losses on one position cannot be offset by another. If the position is liquidated, then the trader cannot lose more than the size of the margin.
How to choose a cryptocurrency exchange for margin trading: basic criteria
The following principles should be taken into account when choosing a site:
✅ High liquidity. A large number of available currencies and active users is a guarantee that at the right time it will be possible to buy or sell an asset.
✅ High security – at a minimum, the settings should have an option to enable two-factor authentication and set a trading password.
✅ Extensive toolbox and user-friendly design. These factors will ensure comfort during work and quick mastery of the site’s functionality. As a result, trading will be more efficient.
✅ Commissions. High commissions are considered fees above 0.2% of the transaction amount.
✅ Suitable deposit and withdrawal options.
Of course, you should read reviews on the Web before starting money on a particular site. A reliable exchange always has a lot of positive reviews, although negative ones are also normal.
Features of margin trading. Basic trading rules
The very idea of a margin trade is based on providing a loan to a market participant. The lender can be, for example, an intermediary or broker. Margin is the amount provided as a loan. There is a concept of “margin lending”, and this is an opportunity for an ordinary user to use in trading amounts several times greater than those that he can dispose of at the moment.
To guarantee the return of the loan, the user pledges his own money or other liquid asset, if we are not talking about cryptocurrency. For example, in the stock markets, these are securities.
Margin trading rules on the exchange:
✅ Opening a special account (margin account), which replaces the agreement between the lender and the participant taking the loan.
✅ Closing the debt to the lender after the completion of the sale.
✅ Payment for lending services at a fixed interest rate.
Exchanges are closely monitoring to ensure that the value of digital assets on a margin account does not fall below a certain level. If prices rise, the position can be kept open as long as you like, since there is no risk of losing your own and borrowed funds. However, if the price falls, then the exchange will prevent the loss by liquidating the position. This can be prevented by selling a certain amount of assets or by investing additional funds on the margin account.
The liquidation of a position on the Bitmex exchange is arranged in a special way. There is a chart on the site where you can see a line called the Bitmex Index. And the liquidation of a position does not occur when bitcoin falls to a certain level, but when the Bitmex index reaches this level.
Stop-loss is a type of order that serves to limit risks when trading and automatically closes positions as soon as the value reaches the desired level. Stop loss is considered one of the main tools for effective trading.
From a technical point of view, this is just a pending order that is automatically activated at a given rate value. The difference is as follows: in a regular pending order, the deal is not closed, but replaced with a new one. Stop-loss, on the other hand, allows you to get rid of the constant monitoring of the state of the position.
Advantages and Disadvantages of Leveraged Trading
There is a lot of controversy surrounding margin trading. To understand, you need to highlight the pros and cons of this process.
✅ Flexibility and lower entry threshold for newbies. Even those who do not have enough funds for serious investments can now gain access to the market.
✅ High profitability in case of successful trading. You can get income 5, 10, 100 times more – depending on what leverage the exchange provides.
✅ Portfolio diversification. The opportunity to increase your investment advantages due to the fact that with a limited number of investments, you can buy both bitcoin and several altcoins.
❌ The risk of large losses. In the event of unsuccessful actions, if there is no well-thought-out strategy, you can lose capital much faster than it would happen with normal trading.
❌ Stress. Any trader will attest that cryptocurrency trading is always stressful if they risk their money. But they get even more nervous when they risk other people’s funds, which they will then have to give away.
❌ Expenses. Due to the fact that interest must be paid for the loan, the level of profit decreases.
As for the position of the exchanges themselves, from their point of view, margin trading is beneficial – it attracts new market participants and increases liquidity. Therefore, there is no doubt that the region will continue to develop.