Ethereum Margin Trading: How to Trade with Leverage?

Trading with margin is a straightforward process that bears its advantages and disadvantages. In essence, it allows traders to increase their buying power, hence enhancing the potential rewards without depositing extra funds. The borrowed funds, known as leverage, can increase your potential rewards and losses. 

CEX.IO allows eligible participants to utilize up to 5x leverage when trading Ethereum on margin. Such an advantage can enable users to control a position worth five times their initial purchase amount. For example, if a participant has $100, they can potentially control a $500 position in Ethereum.

Example: 

• Without Leverage: If you have $100 and Ethereum is priced at $1000, you can buy 0.1 ETH.
• With 5x Leverage: Using the same $100, you can borrow an additional $400 from CEX.IO, giving you $500 to participate. This allows you to buy 0.5 ETH.

Besides the possibility of participating in an established crypto ecosystem with over a decade of experience, crypto enthusiasts can enjoy a number of advantages through our margin trading service, including:

• Potentially receiving more rewards from market movements in cryptocurrencies by leveraging your balance.
• Using margin trading to hedge existing positions while reducing overall risk exposure.
• Utilizing both rising and falling markets which may result in more flexibility in your trading strategies. 

Disclaimer: The availability of margin trading is subject to jurisdictional restrictions and may vary depending on the user’s country of residence.