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A Guide to Solana (SOL) Margin Trading: How to Trade with Leverage

Solana margin trading allows you to trade SOL with greater leverage. This means you can amplify potential rewards by borrowing funds from CEX.IO to increase your buying or selling power. It’s different from traditional Spot Trading as it enables you to increase your balance up to 5x through the CEX.IO Margin Trading feature.

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What is Solana (SOL) Margin Trading?

While most newcomers often use Instant Buy on CEX.IO to buy cryptocurrency (in this case SOL) at the current market price (meaning they deposit a specific amount of fiat and receive the corresponding amount of SOL), Solana Margin Trading on CEX.IO offers a different perspective.

Here's the key difference:

Instant Buy: You directly purchase SOL with your deposited funds (e.g., deposit $50 and receive the equivalent amount of SOL at the current market price).
Margin Trading: You borrow funds (leverage) from CEX.IO to amplify your trading power. This allows you to open larger positions (buy or sell) than you could with your initial deposit alone.

Example:

Imagine you have $50 in your CEX.IO wallet and want to buy SOL.

With Instant Buy: You would purchase SOL at the current market price for your entire $50.
With Margin Trading (using 5x leverage):
1. You deposit your $50 into your margin wallet on CEX.IO.
2. CEX.IO lends you an additional 4x your deposit (in this case, $50 x 5 = $200).
3. This gives you a total buying power of $250 ($50 + $200 borrowed funds).
4. You can then use this $250 to purchase a larger amount of SOL than just your $50.

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Why Choose Solana Margin Trading with СЕХ.IO?

With so many exchanges out there, one might wonder why choosing CEX.IO over others. While there’s no single answer that may sway your decision in one way or another, here are a few points you should consider if CEX.IO is your top choice:

CEX.IO is a regulated cryptocurrency exchange that has been operating worldwide for more than a decade.
CEX.IO has been delivering crypto services since 2013, when the total crypto market cap was merely $1 billion.
With CEX.IO, you can potentially get better prices with combined liquidity from other exchanges.
Our platform may offer a more stable trading experience with an index price.
CEX.IO provides you with flexibility to use various cryptocurrencies (USDT, BTC, ETH) as collateral.
At CEX.IO, you can amplify your rewards (up to 5x) with leverage.