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Margin Trading Tools – All You Need to Know

Margin trading only took off recently in the world of crypto. But it has become very popular! People recognize it as a great way to trade crypto. You still have to get it right though. And for this, you need the right crypto margin trading tools. 

Not sure what these tools are or how they factor? There’s nothing to worry about. Dive into our guide on margin trading tools to know more!

Margin Trading Tools – The ABCs

Let’s start with some definitions. Trading means the buying and selling of assets. Usually, this means trading shares, bonds and other securities. But with crypto, you’re trading digital assets. The overall goal of trading is to make a profit. Okay so far? Great!

Now, let’s understand what margin trading is. Margin trading is one of the strategies that aid trading. The strategy involves borrowing assets to make a trade. But you must contribute part of the value of the trade. For instance, if you set a trade worth €50, you can contribute just €25. Then you borrow the remaining amount. The amount you contribute personally is called a margin. What you borrow is called a leverage. Since you can use funds that you don’t own, it’s possible to make a lot of profit with margin trading. This is why it is quite popular. Want a more comprehensive guide to margin trading? Check out our article on the topic!

Crypto Margin Trading Tools for Successful Trading

With the basics out of the way, we’re now set to go deeper. But there’s something you should know first. Although margin trading has great potential, it can be quite risky. This is mostly because you’re borrowing funds to trade. If your trade goes wrong, you still have to return the funds in full. 

That said, there are ways to mitigate the risk. This is where margin trading tools come in. With the right tools, you can trade relatively safely. Here are our top three tools to help. 

Exchange 

Although it seems obvious, this is very important. Trading ordinarily occurs on an exchange, but your choice can determine success. The first thing to check about an exchange is the leverage available. Remember leverage is what you borrow? Exchanges differ in how much borrowing they allow. Some give you only half your trade. This is a 2x leverage. Others give you more. Some can go up to 200x or higher. There’s no optimal leverage size. It depends on your preferences. 

Other important aspects of an exchange are fees, security and transparency. Some trading strategies, like day trading consist mainly of quick, small trades. So, when profits are slight, you should ensure the exchange fees won’t halve them. You can see how an exchange contributes to success? CoinMetro is a helpful margin trading tool. It is a crypto exchange with low and transparent fees. The exchange also accommodates several crypto trading strategies. These include copy trading, day trading, and more!

Technical Analysis 

Analysis tools help you see important market data. This data gives you critical insight into the market. It can help you significantly improve the outcome of your trades. There are various types of analysis tools. Charts are one of the most popular of these. They help you visualize data so you can better understand and predict price movements. TradingView is a helpful chart tool you can try. It is quite popular in the crypto world. And it offers more than 50 charts for all-round insight. 

Indicators are also powerful tools. They provide signals that tell you when to trade and when not to. Some of the best known indicators are Relative Strength Index, Momentum and Stochastics Oscillator. Others include Moving Averages. Read all about indicators in our comprehensive guide. 

Calendar 

Finally, a calendar tool can be very helpful. The crypto market is often influenced by real world events. For example, new coin releases, trade agreements etc. These can cause a change in the market or prices of cryptocurrencies. So, they are important to keep an eye on. Calendar tools help you navigate all this information. 

A popular calendar tool you can try is CoinMarketCal. It shows you future events in the crypto world. With this information, you can better plan your trades. 

That’s it! Now you know all about margin trading tools, it’s time for some practice. Head on over to CoinMetro crypto exchange to start honing your skills today. Got questions? Our support team is available 24/7.