Buy Cryptocurrency With Leverage

Buy cryptocurrency with leverage

How to Trade Bitcoin with Kraken using Leverage

A derivative is a contract that 'derives' its value from the performance of an underlying asset sometime in the future. A bitcoin derivatives market is where you can buy or sell bitcoin futures contracts if you are confident in which direction the bitcoin markets will move.

Buy cryptocurrency with leverage

Most derivatives have a settlement date on which all contracts are finalized and your position is liquidated. Bitcoin derivative markets allow traders to leverage their position and make a profit whether the price of bitcoin goes up or down.

In a 'Long' position you are borrowing fiat currency such as USD to buy bitcoin with a goal of selling that bitcoin at a higher price.

In a 'Short' position you are borrowing bitcoins to sell for a fiat currencies with the goal of buying bitcoins back at a lower price.

When your trade ends the loan is repaid and you keep all the profits.

Buy cryptocurrency with leverage