The Connection Between Swing Trading and Crypto Margin Trading
To truly grasp how swing trading can be enhanced—or endangered—by Crypto Margin Trading, you need to understand how margin works. Margin trading allows a trader to borrow funds from an exchange or a broker to increase their position size. For example, with 5x leverage, a trader with $1,000 can open a $5,000 position. If the price moves favorably by 10%, the profit is calculated on $5,000 rather than just $1,000. This magnifies returns significantly.