Leverage is the increased buying power that is available to margin account holders. A margin account differs from the regular cash account used by most investors because the short sales with leverage can only be made in margin accounts. Some brokers offer a wide range of digital coins with up to 50:1 leverage, zero commission, and 24/7 trading. Traders use leverage to increase the returns that can be provided on an investment. Traders/investors have to join a platform that allows margin trading and they should keep in mind that trading with leverage can generate much larger losses than traditional trading. It’s not a good idea to hold a short position for long periods of time or to leave an open short position with no stop-loss order. I would recommend everybody to use risk management techniques to limit losses for this type of trading with cryptocurrencies. Leverage is expressed as a ratio and allows you to enter larger positions than would be possible with your account funds alone. If you had $1,000 in your trading account with 2:1 leverage, you would be able to purchase $2,000 worth of cryptocurrencies. When we are talking about trading with leverage, a 20:1 leverage ratio means that the minimum margin requirement for the trader is 1/20 = 5%. This means that the trader is required to have at least 1/20 = 5% of the total amount of trade available as cash in the trading account. A 3:1 leverage ratio means that the minimum margin requirement for the trader is 1/3 = 33%, so trader is required to have at least 33% of the total amount of trade available as cash in the trading account. For example, to trade $10,000 of cryptocurrency, with a margin of 5%, the trader will only have to deposit $500 into his margin account. The leverage in the trade like this is 20:1. IQ Option offers up to x5 leverage for Crypto trading and provides all its members with the tools they need to progress. Traders can trade cryptocurrencies with up to 5:1 leverage on Plus500 trading platform. AvaTrade is offering a wide range of digital coins with up to 20:1 leverage and zero commission.
Depositing options and supported fiat currencies
Brokers that allow trading with leverage offer several ways of depositing money into your trading account: Credit and Debit Card, Wire Transfer, as well as several forms of e-payment. The deposit methods vary and depend on the conditions of each broker. In the most case, all client funds are held in segregated client bank accounts and they are not at risk in case of bankruptcy. On the payment methods page of each broker, clients can find all important information about deposits. A trading account can be managed in most FIAT currencies such as EUR, USD, CAD, AUD, GBP, Japanese Yen but you can check with each broker. AvaTrade accepts deposits by credit/debit cards, bank wire transfer and the minimum deposit amount depends on the base currency of your account. IQ Option accepts deposit and withdrawal via Credit Card (Visa, MasterCard, or Maestro), WebMoney, Skrill, Moneybookers, Neteller.. The minimum deposit amount is $10 or €10, depending on the account currency. IQ Option does not charge any fees or commissions for deposits and withdrawals using a bank card, WebMoney, Skrill, Moneybookers or other financial services. Plus500 accepts deposit via Credit Card (only Visa or MasterCard), PayPal, Skrill and bank transfer. The minimum deposit starts from $100.