How to trade with leverage on AscendEX

Before engaging in leverage trading on AscendEX, it is paramount to grasp the inherent risks and factors such as risk tolerance, market volatility, margin calls, and associated fees.

Nov 23, 2024 at 10:22 am

How to Trade with Leverage on AscendEX

Leverage trading amplifies both your potential gains and losses, so it's crucial to understand the risks involved before you start. Here's a step-by-step guide on how to trade with leverage on AscendEX:

1. Open a Margin Trading Account

• Log in to your AscendEX account.
• Click on "Margin" in the top menu.
• Read and agree to the Margin Trading Agreement.
• Set up a margin account by selecting the assets you want to trade with leverage.

2. Enable Leverage for the Desired Trading Pair

• Navigate to the "Margin" tab and click on the "Enable" button for the desired trading pair.
• Select the desired leverage ratio (up to 10x).

3. Calculate Your Margin and Maintenance Requirements

• Margin requirement: The amount of funds you need to have in your margin account to open a leveraged position.
• Maintenance requirement: The minimum amount of funds you need to maintain in your margin account to keep the position open.
• Use the margin calculator on AscendEX to estimate these values.

4. Select an Order Type and Place Your Trade

• Choose an order type (limit, market, or stop-limit).
• Enter the desired leverage ratio, position size, and price.
• Review the order details and click "Buy/Sell."

5. Monitor Your Position and Manage Risk

• Leverage amplifies potential losses as well as gains.
• Regularly monitor your position and adjust as needed.
• Set stop-loss and take-profit orders to protect your capital.

Factors to Consider When Trading with Leverage:

• Risk tolerance: High leverage increases risk, so only use leverage if you're comfortable with the potential losses.
• Market volatility: Leverage magnifies the impact of market fluctuations. Be aware of the volatility of the asset you're trading.
• Margin call: If your account balance drops below the maintenance requirement, AscendEX may issue a margin call, forcing you to liquidate your position.
• Fees: AscendEX charges interest on leveraged positions. Factor this into your trading strategy.

Additional Tips:

• Limit your leverage usage to a maximum of 5x or less.
• Don't risk more than you can afford to lose.
• Educate yourself thoroughly on leverage trading before using it.
• Practice with a paper trading account to gain experience.