Margin trading on Bitfinex crypto is an advanced feature that allows traders to use borrowed funds to increase their market exposure. This could increase their profit potential, but the risks of this feature are just as present. Here is a step by step guide to using this feature on Bitfinex.
1. Register on the Bitfinex crypto platform
First of all, if you haven’t already, Sign in on the platform.
When registering, be sure to provide all the necessary information e verify your account to level 3, the intermediate levelto be able to use all features of the platform.
If you are only at level 2 (basic plus), you will not have access to margin trading and many options:
2. Deposit funds on the exchange
After creating an account, you need to deposit funds in order to use margin trading. Remember to select the “Margin” wallet to have your funds to tradewhen you are in the deposit interface (“Wallet” then “Deposit” drop-down menu):
There are various ways to deposit money on Bitfinex, there are 5 in all.
You can use a payment bank or a cryptocurrency transfer to make a deposit. Make sure you deposit sufficient funds to cover potential losses when opening your positions.
3. Choose an asset to trade on Bitfinex
Once you have enabled margin trading, you can choose the digital asset you wish to trade. Bitfinex offers a wide variety of cryptocurrenciesincluding Bitcoin, Ethereum, Litecoin and EOS:
You can do a quick search in the search bar at the top right, right next to the “Wallet” drop-down menu. Write the name of a crypto (for example BTC) and you will get suggestions of pairs to trade:
4. Place an order
Once you have chosen the digital asset you want to trade, you can place an order. Remember to check the “Margin” part. in the order form from the top right corner.
You can choose to buy or sell the digital asset using borrowed funds to increase your market exposure.
Choose your order type and enter the amount and price as you normally would in a commercial transaction.
Margin trading increases the risk of lossesso it’s important make arrest orders (stop loss, take profit, etc.) to limit risks:
Alternatively, to close a position, in your window “Locations” find the position you want to close, swipe right to find the button x which will read as Close this position with a MARKET order. Click the confirmation button that appears and the position will be closed.
5. Monitor positions on Bitfinex
After placing an order, all you have to do is constantly monitor your positions. You can use Bitfinex monitoring tools to track your positions and make decisions:
In conclusion, margin trading on Bitfinex is an advanced feature that allows traders to use borrowed funds to increase their market exposure. The step-by-step guide presented above showed you how to use this feature on Bitfinex, from creating an account to tracking your positions.
However, margin trading remains intended for experienced traders and that entails significant risks. Constantly monitor your positions and good trades!
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