What is Margin When Forex Trading?

Trading Bitcoin on margin is shitty - the swap is killing the profits

In recent days I have negative swap ("financing") on my short positions. On 1fox it's up to 0.3% per 12 hours.
On some platforms there is a 0.2% per 24 hours negative swap for long and for short positions (the broker is taking from both positions).
Sometimes the swap is paid by short positions, sometimes by long. There are months that overall swap is near zero, but some months longs or shorts pay more (double digit percent per month!).
This makes trading Bitcoin and other crypto on margin very shitty. When the market is clearly bullish long positions pay high swap that eats big chunk of the profits. In clearly bear market it is the opposite - short positions pay high swap.
Compare this with EUUSD swap rate (0.0025262% daily positive swap for short positions, 0.00715765% negative swap daily for long positions - the rates differ on different platforms, this is just an example).
I made some math with data from BitMex. For 14th, 15th and 16th June the swap is 0.7601% (shorts pay longs ) - it's about 0.25% per 24 hours. Compare this with EUUSD swap.
For last 100 periods (one period is 8 hours) the swap is 0.5743% (shorts pay longs). Which is not that bad. However, there are months when the swap is double digit percent.
Data sources:
https://1fox.com/trade/#stats-funding-rates
https://www.bitmex.com/app/fundingHistory
submitted by tedjonesweb to Bitcoin [link] [comments]

Trading 101: What is a Margin Account? - YouTube Margin Trading 101: How It Works - YouTube Forex Live Trading: Go with the Market! What is Margin Trading?  Fidelity - YouTube Forex Trading Course (LEARN TO TRADE STEP BY STEP) - YouTube

What is Margin? If you are trading with a broker that has set you up with 500: 1 leverage, that means for every $500 you trade, the broker will require you to use $1 as margin. The bigger the trade size, the bigger the amount of margin to open the trade will be. Margin trading can also be against the market, so we can also have a short position with leverage. High leverage risk: The higher the leverage, the closer the liquidation price is. The rule here is dividing 100 by the leverage level will grant you the percentage until you reach the liquidation price. Example: a positive with 1:25 leverage needs 1Fox is a btc/usd leveraged trading exchange. Released by popular bitcoin CFD platform 1broker, we were surprised they chose to roll out a full-fledged exchange rather than sticking with the CFD model they have utilized to such success.A brave choice and one with immense potential; but a challenge for 1Fox to build the volume necessary to seriously compete in the market. 1Fox was active between February 12th, 2018 and October 18th, 2018. It was a leveraged trading platform that offered the BTC/USD and BCH/USD trading pairs. Decision to close 1Fox. 1Fox was the sister platform of 1Broker, which was involved in two civil lawsuits that eventually lead to the shutdown of both projects. Customers were able to Futures contracts, as you may know, are traded through the use of performance bonds, often referred to as margin. The . Are clients of FOX able to use IRA funds to trade futures? This is a question that we hear often, and the simple answer to it is "Yes" - IRA funds can Futures trading involves risk of loss and is not appropriate for all

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Trading 101: What is a Margin Account? - YouTube

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