Are you familiar with these crypto terms essential for the Forex trade?

Sometimes in the crypto currency market there are sudden movements in one direction or another. The main risk in this case is that at the peak of the fall / growth the balance of the trader may fall below the critical level. This usually happens because of too much leverage. Trading with crypto currencies is very striking for trading. Its high volatility makes it special and attracts many investors who know they can make great profits in a short time. 

Exchange

Exchange is a type of affiliate network platform that allows us to trade with crypto currencies and trade. Some have more types of orders than others, but all allow you to set a purchase or sale price if the price reaches a certain point. That is, the price of Bitcoin can be $ 6000 and you can place an order to be sold automatically if the price reaches $ 7,000. This is very important because the market moves very fast and you have to have established your positions of entry and exit previously. Otherwise you can get caught in an operation when there is a sharp movement in the price.

The exchanges have a large number of crypto currencies listed. They are especially necessary although it is not intended to trade since it is the only way to acquire the large part of crypto currencies. Always try to operate with crypto currencies in a currency exchange that has a good volume of trade. Normally the commissions are very low and are designed to be able to exchange between crypto currencies.

Broker

Brokers are somewhat more complex. As for types of orders they work similarly to an exchange. However, they offer other functions that are more focused on trading in a more professional way. This way of operating is also riskier if you don’t have knowledge at a more professional level. The crypto currency list is much more limited. Normally only pairs can be traded against the US Dollar and only the most important and known crypto currencies. As the market consolidates, more crypto currencies are added to this type of trading platform.

Brokers allow you to bet whether an asset is going to go up or if it’s going to go down. You can also use the leverage tool. In case you are not very familiar with the trading vocabulary and the terminology of the crypto world, leverage is when the broker allows you to operate with money that you do not have in exchange for a promise of payment. It is the responsibility of each trader to choose what type of operations he is going to carry out and what type of orders he needs for it.

Is marginal trading stable?

Marginal crypto currency trading is perhaps one of the most dangerous activities in the financial markets. Digital assets themselves have a high risk, and additional leverage only aggravates the situation. You can very quickly lose a significant amount of money. Unlike conventional trading, margin can lead to the loss of all funds in an investment account. 

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