Cryptocurrency Trading_ A Deep Understanding of Leverage_Margin Exchange Platform
                     Cryptocurrency Trading: A Deep Understanding 
of Leverage/Margin Exchange Platform
Introduction
 What is leverage trading?  
 What is buying on margin?  
 Working of leverage Trading  
 Conclusion
What is leverage trading?
In simple terms, leverage trading is a trait that is executed by using  borrowed shares 
from your broker to increase the size of your portion  in a play so that you can make more 
money on the other side.
There are different types of leveraged trades like options, futures  contracts, and buying on 
margin. Among all of this, buying on margin  is considered to be the most profitable, and 
proportionally, the  riskiest.
Leverage Ratio
What is buying on margin?
 While buying on margin might seem so sophisticated, we have always had an  alternate terminology that we have taken for granted –  loans! 
Yes, what we  essentially do while taking a loan is that you take a considerable chunk of cash  from an institution that profits from lending 
money to you.
If you were to buy a car for $50,000, you end up putting down payment of $5000 and  borrow $45,000 over a time period of, let's say  
         five years.
Every month, you pay an installment for the borrowed money, which includes both the  principal and the interest.
Margin trading also has certain factors like the multiplier and the amount that you will  need to essentially have in your trading account.
Although the process might be similar, it cannot be considered completely congruent  because buying a car or a physical asset is not the 
same     as borrowing for trading.
How does leverage trading work?
Leverage trading is all about borrowing shares or cash to buy shares, or in this context, crypto assets for  
trading from the exchange itself.
Leverage is always expressed as a ratio –  some crypto exchanges offer leverage of 2:1, and some even  
offer leverages as high as 100:1.
Let us take the example of a 100:1 leverage. The 100:1 leverage simply means that  you can borrow 100 times the 
amount you have set aside as the margin. Therefore,  if you have $1000, you can participate in trades that require 
you to have $100,000.
For the sake of convenience, let us take the price of the Bitcoin to be $1000. If you  have just $1000, you can buy 
just one bitcoin. If the price of the bitcoin rises by let's  say, $10, you can sell them and get a profit of $10 for that 
$1000 you have.
However, if you were to borrow $99,000 from the exchange as leverage, you can  trade for $100,000 instead of 
just confining yourself to the $1000. This means that  you will not make just a $10 profit but a $1000 profit.
Once you have made your profit, you will have to return the $99,000 that you  borrowed to the exchange itself. In 
addition, there is also an interest that is levied  on the borrowed amount.
Conclusion
The stress on the fact that the exchange does not suffer any losses is quite inviting a statement to  make 
whitelabel leverage crypto exchange a lucrative business.
It is quite easy to kickstart your business provided you meet the regulatory requirements, and  establish 
your compliance. All  you  need to do is either create your crypto exchange platform with  leverage from 
scratch or purchase white label cryptocurrency exchange software with leverage.
There are a lot of companies that provide these services such as this website, and all you need to do  is get in 
touch with them and let them know about your requirements.
Visit Us
Website: https://
www.infiniteblocktech.com/leverag
e-crypto-exchange-software