What is Amount and Margin Trading?

There are many terms in crypto money markets and platforms. We have compiled some of the terms for you.

Address: The name given to the string of complex characters used to send or receive cryptocurrencies. Each asset has a unique address.

Accumulation: It is the name given for the price to remain horizontal for a certain period of time. It is also known as consolidation.

Altcoin: It is the name given to all cryptocurrencies that are released as an alternative to Bitcoin.

Arbitrage: It is a purchase-sale transaction made to profit from price changes occurring in various exchanges.

ATH (All time high): The highest point reached by the cryptocurrency. The record value.

FOMO (Fear of missing out): It is the name given to the fear of missing the opportunity that the investor feels when any cryptocurrency is experiencing an uptrend.

Market Order: It is the order that executes at the current value of the traded transaction, without a forward-term order in the purchase or sale transaction in the crypto money markets.

Pump and Dump: It is the name given to a simultaneous manipulation of the price downwards or upwards at a certain time by a group of investors.

What is Margin Trading?

Margin Trading is a type of transaction where users can perform large volumes of transactions with the help of leverage with a small amount of money. For example, with margin trading, you can trade with 2 or 3 times more than the asset you have. The numbers may vary depending on the platform.

You can make a high level of profit with margin trading, as well as large profit losses. You can earn 3 times more or lose 3 times more.

Let’s explain margin trading with an example: You have 2 ETH. By choosing 2 ETH and leverage 2 (2×2), you can open long positions of 4 ETH, considering that BTC will rise.

What Do Short Position and Long Position Mean?

We can explain the short and long positions with examples. Assuming you open a long position, you will make a profit when the cryptocurrency gains an upward acceleration. Another possibility is that you will suffer a loss with a downward acceleration.

In the short position, if the cryptocurrency moves downwards, you will experience profit and if it moves upwards, you will suffer losses. With the cryptocurrency in a downtrend, you can upgrade your ETHs by using the short position for ETH.