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BTCC / Hashtag / traded on margin
#Bnb #crypto neurop geo vulgaris #XRP
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What are the rules of margin trading?

Adjust your position size – Although margin trading allows you to open a much larger position than the size of your trading account, the first rule of successful trading is to preserve your capital. Risk only a small amount of your trading account per each trade – the golden rule is not to exceed 2% of risk-per-trade.

What is buying on margin?

Buying on margin is the purchase of a stock or another security with money that you’ve borrowed from your broker. It’s an example of using leverage, which means utilizing borrowed money to increase your potential profit.

How did margin trading affect the stock market?

Prior to the 1929 stock market crash, margin trading encouraged speculation because traders were effectively able to make rapid gains with a relatively low investment. These gains encouraged more margin trading, creating a bubble that pushed asset prices higher.

Who sets the margins for securities?

The Federal Reserve Board sets the margins securities. As of 2023, under Federal Reserve Regulation T, an investor must fund at least 50% of a security's purchase price with cash or other collateral. The investor may borrow the remaining 50% from a broker or a dealer. 1 However, many brokers set higher margin requirements for their customers.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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