In the crypto world, it is common to see spot traders utter statements like “I could have made more profits if I had more money to invest.” Of course, this might not have been an issue if such traders had taken a chance on leverage trading. In fact, what is leverage trading in crypto?
Before now, it is very possible to have come across “leverage trading” and probably thought it is a complex term you wouldn’t understand. Fortunately, it isn’t! This form of trading allows you, as a trader, to take on positions higher than your initial investment through the use of leverage. Simply put, it increases your purchasing power, thereby, exposing you to higher rewards (profits) and risks (losses).
For instance, if you have 1000 USDT and trade with a leverage of 2x. This implies that you can get an additional 1000 USDT and enter either a LONG (buy) or SHORT (sell) position.
Leverage can either be created for margin, futures, or perpetual trading on OKX.
Trading With Leverage On OKEx Exchange
To start trading with leverage on the OKEx exchange, you should follow the steps highlighted below…
1. Navigate To Margin Trading
On the OKX homepage, go to the top menu and click on “Trade”. From the drop-down menu, select “Margin trading“. If you’re a beginner, it is highly recommended to use the basic view. However, the Advanced option might be suitable for an experienced trader for a more comprehensive view.
You can easily switch from advanced to basic view by simply clicking on the layout option (just before the gear icon at the top-right corner), then, clicking on “Standard” and deactivating the “chart’. Moreover, the OKX platform allows you to customize the layout to your taste.
2. Activate Margin Trading
Before you can begin trading at all, it is required of you as a beginner to activate your margin trading account.
To do this, scroll down and click on the button with “Upgrade for trading”. By default your account is set to Simple spot trading, however, you should enable margin trading by changing your account mode to “single currency margin”. If you meet the requirements for other options with more features, you may go for them.
As a beginner to margin trading, you should understand and acknowledge the risks involved, therefore, OKX would allow you to trade only after checking the box and clicking “Confirm” as shown in the screenshot below. You should get a response that your account has been activated successfully.
3. Fund Your Trading Account
Now that your account has been successfully activated, you should proceed with funding your margin account so that you can start trading.
To do this, navigate to “Assets” at the top menu and click on “Deposit” if you don’t already have funds on your OKX account.
Follow the steps below to ensure it is done correctly, otherwise, you can buy directly from OKX.
- Select your preferred Crypto (We recommend USDT)
- Select the deposit network (TRC-20 costs less & transaction speed is fast) and click on the “Continue” button to proceed
- You can either deposit to your “Funding account” or “Trading account”
- Copy the USDT address generated and send any amount you’re comfortable trading with.
For the sake of this guide, we deposited about 11 USDT directly to the trading account.
4. Select Your Desired Trading Pair
At the left bar of the margin trading dashboard under “Market”, you can select any trading pair you would like to trade. At the top-right corner of the bar, you can select either USDT-margined or CRYPTO-margined trading pairs. However, your account should be funded with the appropriate currency.
For example, USDT-margined trading pair (1INCHUSDT) is selected for this guide.
5. Choose a “Leverage” You’re Comfortable With
Before choosing a leverage, it’s good to remind you that you could trade with either isolated or cross margin and these options can be found at the top just after the margin trading bar. In an isolated margin, you are exposing a specific amount of funds in your trading account to risk. On the other hand, cross margin exposes all the funds in your trading account to risk.
You can now choose the desired leverage just in the same row with the margin-type options. The minimum leverage you can use currently is 1x while the maximum is 125x. You shouldn’t forget that the higher the leverage chosen, the higher the risk and vice-versa. After choosing a leverage, click on the “Confirm” button.
“L” means Long/Buy and “S” means Short/Sell.
6. Initiate Your Trade
Once you are quite sure that a trade would go in a certain direction based on your discretion using technical or fundamental analysis, you can now initiate your trade.
To do this, set the amount you want to trade with (you can use all or part of your trading funds). For this guide, we initiated a Long position under “perpetual” at market price because we thought 1INCH would rise. If we were convinced 1INCHUSDT was going to drop, it would have been a Short trade.
7. Review Your Trade
After your trade is submitted and executed, you can review the status of your position by clicking on the Orders History tab at the bottom of the trading homepage. This section shows you useful information such as the “Filled and Order Amount,” “Avg. Filled Price and Order Price,” “Status” and so on.
8. Close Your Trade (Optional)
If you would like to cancel your open position, you can do so by clicking Cancel in the “Open Orders” tab. If it’s a running position, simply click “close” after you set the amount (in %) or close all at market price as shown in the screenshot below.
However, you can learn more about trading in OKX through information and education provided by MyCryptoParadise. Use our discount PRO5% to get an exclusive 5% discount on your premium membership today! Join the MyCryptoParadise telegram channel through this link.
