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Cardano Margin Trading: Trade with Leverage
Cardano margin trading allows eligible customers to trade ADA with a balance greater than their initial deposit, also known as leverage. Unlike our traditional Spot Trading, which allows participants to trade ADA with their deposited funds, Margin Trading enables enthusiasts to increase their purchasing power by borrowing a certain amount of credit from CEX.IO.
Such a trading strategy may allow users to enjoy increased rewards, but it also carries some inherent risks, which we’ll both discuss in later sections. So, without further ado, let’s discuss ADA margin trading and how to trade with leverage on CEX.IO.
Start tradingHow to Trade ADA with Leverage on CEX.IO
Those looking to trade ADA with a greater market exposure should follow these simple steps:
- Head on to Margin Trading from the Products menu.
- Select the cryptocurrency pair, like ADA-USDT.
- Choose between the buy or sell.
- Select “Market” as your preferred order type.
- Specify the amount of ADA you want to buy or sell.
- Set leverage amount.
- Add protection orders. CEX.IO allows you to choose Take Profit or Stop Limit.
- Review order details before proceeding.
- Select "Open Long" or "Open Short" and place your order.
Note: The leverage amount may vary and is typically determined by your account equity and the CEX.IO’s risk tolerance.
Why Choose Cardano Margin Trading with СЕХ.IO?
While both Spot Trading and Margin Trading essentially offer the same – the ability to sell or buy cryptocurrency, experienced traders typically choose the latter for several reasons:
- Cardano margin trading may increase your chances of receiving higher rewards due to enhanced trading balance.
- CEX.IO Margin Trading allows you to use up to 5x leverage.
- You can use Cardano margin trading to reduce overall market exposure and hedge existing positions.