Why trade on margin?

Increased buying power and profit potential

Margin trading on the Blockchain.com Exchange enables you to increase your profit potential through leverage, or increased buying and selling power, on your trades. 

The Blockchain.com Exchange offers up to 5X leverage on BTC-USD.

Using the increased buying or selling power from your existing balance can lead to potentially greater gains as well as greater losses from your trades. Learn more about how to manage the risks of margin.

Greater flexibility in fund management

When you trade on margin, you can stretch your investment capital further and diversify your trading portfolio since you don’t need to have the entire trade balance to enter into a margin position.

Example: 
Let’s say you wanted to buy BTC and ETH with $1,000 USD of investment capital.

Investing on the spot market with $1,000, you would split the investment capital between the two assets. If you bought $500 of BTC, you could invest the remaining $500 into ETH.  

Using 5X leverage, you put up $200 as collateral and then purchase $1,000 of BTC. Said in reverse, you can get access to $1,000 worth of BTC to trade, lend, store, or otherwise use with only $200 of investment upfront.  

In eligible markets, you can use either base or counter currency to open margin positions.

 

Important note
When considering trading on margin, you should determine how the use of margin fits your own investment philosophy. It is important that you fully understand the risks, rules, and requirements involved in trading digital assets on margin. Margin trading increases your level of market risk. You may lose some or all of the collateral you post in connection with a margin trade. Blockchain.com may initiate the sale of digital assets in your account, without contacting you, to meet a margin call. You are not entitled to an extension of time on a margin call. Further details are set out in the Margin user agreement.

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