Margin trading is trading with leverage. It allows you to use funds in your trading account as collateral to open positions worth more than the amount you put up.
The asset is not added to your balance. Instead, a trading position is opened, and its profit or loss depends on price movements.
Example: when opening a long position on BTC/USD, you expect the price of Bitcoin to rise. If the price goes up, you may make a profit; if it goes down, you may incur a loss. When opening a short position, the opposite applies: you may profit if the price falls and incur a loss if it rises.
How Margin Trading Works
Trading is carried out using trading instruments. Each instrument shows which asset’s price is tracked and the currency in which that price is quoted.
Example: BTC/USD
BTC is the asset whose price you trade on.
USD is the currency used to quote the price of BTC and calculate the trade’s profit or loss.
To open a position you need to place an order: a request to buy or sell an asset. Depending on the selected
order type, the position may open immediately at the available price or when specified conditions are met.
Margin trading also uses leverage, which allows you to open a larger position with a smaller amount of your own funds as collateral.
FREE2EX offers leverage from x5 to x1000. The maximum leverage depends on the trading instrument and varies across cryptocurrencies, currency pairs, commodities, indices, stocks, and ETFs.
Leverage increases both potential profits and potential losses.
Swap is a fee or credit applied to a position that remains open overnight. The swap amount depends on the trading instrument and the direction of the position.
You can find the swap rate for a specific instrument in its Specification.
Learn how to view an instrument's specification in the
Web Terminal.
Assets Available for Trading
The FREE2EX margin market offers several categories of trading instruments:
Popular Cryptocurrencies
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Solana (SOL)
- Cardano (ADA) and others.
Other Cryptocurrency Projects
- Avalanche (AVAX)
- Polkadot (DOT)
- TRON (TRX)
- TON
- Aave (AAVE) and others.
Currency Pairs
EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CAD.
Precious Metals and Commodities
- Gold (XAU)
- Silver (XAG)
- Natural Gas (XNG)
- Brent Crude Oil (XBR)
- WTI Crude Oil (XTI)
Stock Indices
- S&P 500
- Nasdaq 100
- Dow Jones
- DAX
- Euro Stoxx 50
Stocks
- Apple (AAPL)
- Microsoft (MSFT)
- Amazon (AMZN)
- Alphabet (GOOGL)
- NVIDIA (NVDA)
Exchange-Traded Funds (ETFs)
- SPDR S&P 500 ETF (SPY)
- Invesco QQQ (QQQ)
- iShares Bitcoin Trust (IBIT)
- ARK Innovation ETF (ARKK)
- iShares MSCI Emerging Markets ETF (EEM)
FREE2EX offers more than 700 trading instruments for margin trading.