Margin trading has become increasingly popular among digital currency traders over the last few years. As a result, a number of leading exchanges have added bitcoin margin trading features to their platforms to meet the growing demand.
What Is Margin Trading?
Margin trading refers to using borrowed funds to increase the size and, therefore, potential profit (or loss) of a trading position. Margin refers to the amount a trader needs to hold on his or her account to open and hold leveraged trading positions.
For example, you could buy a digital asset for $1,000 using $200 of your own funds and $800 borrowed from margin lenders on a margin trading platform. The net value of the position (asset price minus the amount borrowed) is $200. In this scenario, the trading platform may require you to hold $100 on your margin account for this position.
If the value of the asset drops from $1,000 to $850, you will need to top up your margin account by an additional margin of $50 to compensate for the drop in asset value and to ensure that your margin position remains open. If you do not respond to the margin call, the trade will be closed out automatically.
Experienced traders resort to margin trading in an attempt to amplify their trading profits. If the margin trade goes in the right direction and it closed out while in profit, the trading profit is multiplied by the leverage the trader has chosen (minus the margin borrowing fee and any other trading fees).
Top Bitcoin Margin Trading Calculators
Bitcoin margin trading calculators enable traders to compute how much in funds they need to hold on their account to open and hold a leveraged trading position.
Below you will find a list of bitcoin margin trading calculators that you can use for free. To rank the calculators, we have looked at criteria such as ease-of-use, popularity (measured by the number of backlinks), and the number of supported digital currencies and tokens.
|Name||Description||No. of Supported Digital Assets||Number of Backlinks||Ease-of-Use||Mobile-Friendly?||Calculatable Leverage Available||Score|
|Coinexx Margin Calculator||Coinexx is a forex and digital currency trading platform that enables users to trade using leverage of up to 500:1. Its Margin Calculator enables users to find out how much margin they need to hold given the asset, volume, and leverage they want to use for a specific trade on the Coinexx platform.||5||13||1||Yes||Up to 1:500||3.5|
|CryptoGT||CryptoGT is a small leveraged trading platform for digital assets. On its Real-Time Margin Calculator, users can calculate how much margin they will need to open and hold a position on CryptoGT, dependent on the amount and the leverage with which they choose to trade.||13||0||1||Yes||Up to 1:200||3|
|FxPro Margin Calculator||FxPro is a leading forex online broker that also supports digital currency trading. On its FxPro Margin Calculator, users can compute how much margin they will need to hold for a position in bitcoin, depending on the amount of bitcoin they want to trade and the leverage ratio they intend to use.||1||216||1||Yes||Up to 1:500||3.5|
Be mindful, however, that these are all margin calculators linked to trading platforms and, thus, use each platform’s margin requirements in their computations. Nonetheless, they provide excellent guidance on how much you can roughly expect to hold as margin when putting on leveraged trading positions.
- How to Trade Bitcoin Using Margin
- Top 5 Crypto Exchanges for Margin Trading, Rated and Reviewed 2019
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