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RE: STEEM: Ask It And I Will Try To Answer It.....Let's Hear What Is On Your Minds
First of, THANK YOU! I’ve never come across a post like this where a user is like “Hey, I murder my audience with big words and complicated terms let me check up on their actual understanding”(Something schools should do). My question is on “Marging watching”. I understand that you place what I see as a “bet” which can be increased by getting a loan from the provider. If the certain coin decreases in value then you lose all you placed down, otherwise you gain. On what websites do you this? And I’m getting what’s going on? Anything to add?
Buying on margin isnt only isolated to cryptocurrencies.
To learn about that, I suggest a site like investopedia.com and doing a search for margin buying there.
Basically, it is a way of leveraging your purchase by taking say, 1,000 but buying like you had $10K worth of money. If the asset goes up 10%, the total gain would be $1000 which would double your initial money (less the margin costs). Of course, if it goes down 10%, you would have a margin call meaning they close the trade and keep your $1,000.
I am not sure which brokers offer margin buying on tokens but I would suggest you avoid it. That is a technique for highly advanced traders.