Margin trading vs. Futures: What are the differences? By Cointelegraph
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While investors find margin trading and futures very attractive because of their potential returns, they should be cautious and consider all the risks before adopting them.
Risks associated with margin trading
Crypto margin trading is riskier than standard trading because of the leverage component, which may lose the investor more money than they held initially. Especially considering that cryptocurrencies are very volatile and unpredictable assets, the investor may have to provide extra funds to the collateral to avoid being forced to sell.
Risks associated with futures trading
Margin trading vs. futures: Similarities
Opportunity
Purpose
Margin trading vs. futures: Differences
Different markets
Leverage
Collateral allocation
Duration
Types of investors
Margin trading leverage
Continue Reading on Coin Telegraph
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While investors find margin trading and futures very attractive because of their potential returns, they should be cautious and consider all the risks before adopting them.
Risks associated with margin trading
Crypto margin trading is riskier than standard trading because of the leverage component, which may lose the investor more money than they held initially. Especially considering that cryptocurrencies are very volatile and unpredictable assets, the investor may have to provide extra funds to the collateral to avoid being forced to sell.
Risks associated with futures trading
Margin trading vs. futures: Similarities
Opportunity
Purpose
Margin trading vs. futures: Differences
Different markets
Leverage
Collateral allocation
Duration
Types of investors
Margin trading leverage
Continue Reading on Coin Telegraph