ParamountDax is Working on Adding Margin Trading

CryptoCurrency Press Release

11th October 20193:18 pm

Margin Trading on ParamountDax

Dear Community,

Since Margin Trading is currently only available in a selected number of platforms, we are actively working on new features for the ParamountDax platform to provide a Margin Trading for our users in order to increase their profit.

Margin trading allows a trader the option of trading in volumes more significant than the principal amount a trader holds.

Margin trading can be used to open both long and short positions. A long position reflects an assumption that the price of the asset will go up, while a short position reflects the opposite. While the margin position is open, the trader’s assets act as collateral for the borrowed funds. To understand margin trading, you’ll first need to understand the concept of leverage.

What are Margin and leverage?

Margin and leverage are extremely important concepts to any trader actively participating in the market. The underlying principles and how they’re applied are the same for Open Finance as they are in traditional markets.

Margin is the collateral amount being deposited by the trader

Leverage increases the potential reward for a trader but also increases the risk.

How to margin trade — going long vs. going short

There are two options when opening a margin trade:

Going long: also referred to as opening or entering a long position, this is when you buy a cryptocurrency in the belief that its price will go up. The aim is to use leverage to benefit from increased gains if the price rises as you predict.

Going short: also referred to as opening or entering a short position, involves selling a cryptocurrency to bet that its price will go down. The aim is to then purchase that crypto back once its price has dropped and profit from the spread.

Before we go into the advantages, it is essential to say that margin trading carries a very high risk, and it can lead to significant losses if not done correctly.

In case you don’t know how margin and leverage work, the margin is the amount of capital that is invested in a trade-in proportion to the total position held by utilizing leverage. For example, if a trader took 100x, or 1:100 leverage with an account balance of $100, their position would increase to $10,000 — thus the margin is just 1%. So any profit made is also multiplied by 100, which is profoundly rewarding; particularly when you consider that only $100 of the trader’s funds was risked to access such a profitable trade.

Advantages

– Large profits due to the greater relative value of the trading positions

– Several positions with relatively small amounts of investment capital

– Investors can easily take up trading opportunities as they arise

– Opportunities may arise without notice, in this way, traders can obtain increased profits through margin trading compared to spot trading.

Margin trading can be very rewarding when done right. However, like any trading practices, there are risks associated with it that may lead to massive losses.

Summary, Margin trading is a great way to boost purchasing power, especially if you are an experienced trader. However, it comes with significant risks, particularly if used incorrectly

Be on the lookout for more tips on Margin Trading in the future.

We hope you will enjoy this exciting part of the cryptocurrency world. And if you have any questions, feel free to reach out to us at any time.

Good luck! And see you soon!

Website : https://paramountdax.io/

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THE AUTHOR
Diallo Mamadou
Diallo Mamadou