What is a margin deposit, and how to trade safely?

In the world of trading, also on the cryptocurrency market, trading on derivatives is attracting more and more attention. 

The entire process of trading derivatives is based on borrowing money from a broker to invest. To make a position on investment possible, traders must first pay an appropriate margin. Such deposits are divided into two types - initial deposit and margin deposit.

The initial deposit is the amount an investor pays before placing an order. This process is carried out by blocking the amount of money on the investor's account. 

The second type is the margin deposit. The appropriate margin is the minimum value of funds that must be kept in the account by the investor. The value of the deposit may go up or down, and it may drop below the appropriate margin. Then the investor has to replenish funds.

However, it is a good practice in the derivatives trading market to close an investor's position before it causes a negative balance, which would expose the investor to additional losses. This protection is used by the Geco.one exchange.

You can enter into transactions safely on the Geco.one cryptocurrency derivatives exchange. For example, if you deposit 0.1 BTC and operate positions that do not exceed your balance, we actually do not use leverage. 

You can always set stop-loss and take-profit levels for safety.

There are many other benefits on Geco.one exchange, such as:

  • The high-speed execution of orders;
  • Creating multiple accounts under one login;
  • Easy navigation and customizable trading panel;
  • No price slippage;
  • The possibility of using several types of orders that are not offered by SPOT exchanges;
  • The ability to play for declines on a given cryptocurrency;
  • Trading on a low spread.

It’s time to finally get down to business. Start serious trading with Geco.one.

Top 20 cryptocurrencies, 1:100 leverage, staking, low fees, intuitive design, no KYC. Trading on derivatives has never been easier. Join us app.geco.one

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