Hedge your risks and capitalize on crypto market volatility today!
Margin trading and open-ended BTC/USD derivatives: how to make money on cryptocurrency volatility
What is margin trading?
Margin trading is a trading method in which traders use borrowed funds to increase the volume of positions. This tool provides an opportunity to earn both on the rise and fall of the asset price. In the world of cryptocurrencies, margin trading is especially popular due to the high volatility of the market, which provides ample opportunities for quick profits.
Perpetual derivatives: key features
Perpetual derivatives (perpetual contracts) are a unique financial instrument that allows traders to open long or short positions on cryptocurrency pairs, such as BTC/USD, without a contract expiration date. The main advantages are:
- Ease of use. No need to care about expiry dates.
- Flexibility in risk management. Use of leverage up to x125.
- Financing. The payment mechanism between buyers and sellers provides a balance of interests in the market.
How does it work?
Let’s say a trader expects bitcoin to rise from its current level of $90,000 to $100,000. With BTC/USD open-ended contracts, he can open a long position by depositing only a portion of the contract value (margin) and use leverage. If the forecast turns out to be correct, the profit will increase significantly due to the leverage. However, it should be remembered that the risks also increase.
Risks of margin trading
- High volatility. Even small price fluctuations can lead to liquidation of positions.
- Overleveraging. Using too much leverage can quickly deplete margins.
- The need for in-depth analysis. Successful trading requires constant monitoring of market trends.
Protect your investment with ALX index token
The cryptocurrency market offers many opportunities, but is associated with high volatility. That is why we have developed the ALX index token, which minimizes risks and allows you to earn even in conditions of instability.
Why choose ALX?
- Volatility Hedging. ALX automatically protects investors’ capital from sharp price spikes.
- Ease of use. You don’t need to be an expert in trading – algorithms do everything for you.
- Diversification. The token is linked to a basket of assets, which reduces the risk of losses.
- Transparency and liquidity. Support on major exchanges and full control over assets.
Investments with ALX: less risk, more profit!
With ALX you get a reliable tool for stable capital growth. Whether you are a beginner or an experienced trader, our token will be an ideal choice for long-term investments and volatility hedging.