When a trader using a third party’s capital answers the margin call, additional funds are deposited, and the margin account is returned to, or above the maintenance requirement. For these reasons, it is especially important for margin traders to monitor their equity and maintain a level of funds that is sufficient to avoid a margin call. On the other hand, if a margin call is ignored, a trader’s assets and collateral are sold to cover potential losses.

This means that a successful trade will bring in more gains, but you always have to keep in mind that losses can add up very quickly as well – for this reason, margin trading is not suitable for inexperienced traders. However, with the rise in popularity of crypto assets, digital asset investors can now trade hundreds of different coins and tokens on margin. Yes, you can trade cryptocurrencies on margin. Initially, only margin trading for the most liquid and popular digital assets, like Bitcoin, Ethereum, and Cardano was available. Can you trade crypto on margin?

As we’ve mentioned previously, this type of trading allows traders to supply collateral and open a position with a broker using just a fraction of the total position’s amount. The leverage level basically describes how much traders’ capital will be multiplied when managing a position in the market. When using high leverage such as 100x, even the most minute market movements can result in liquidations on one end and massive windfalls on the other. Using a 100x leverage means that a $1,000 position would be magnified into a $100,000 position in the market.

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Leverage terms are highly competitive, with up to 100x leverage on select futures markets, providing margin traders significant flexibility. Launched in 2014, BitMEX is one of the longest-running crypto derivatives platforms, allowing margin traders to enter short and long positions using perpetual contracts across more than 50 crypto pairs. BitMEX is a derivatives-focused cryptocurrency exchange and one of the best platforms for leverage trading crypto – it supports up to 100x leverage on some of its products, meaning that users can enter positions worth as much as 100 BTC with just 1 BTC to back it. The platform’s stringent security, including 96% cold wallet storage and CCSS Level 3 certification, reassures traders that their assets remain well-protected.

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