News circulating in mainstream media is predicting that the price of Bitcoin is going to rise over the coming days. You decide that you want to take advantage of the potential price increase by placing a leveraged trade.
The following steps will guide you through opening and executing a trade position on the open market -
1. Choose an Exchange to place your market trade with
Note: In this example, itBit is greyed out and is not available due to full trading capacity having already been taken up. In this case we decide to go with Bitstamp.
2. Ensure you have a sufficient Balance to Open a Trade
- your Account Balance needs to cover the following -
Trade Deposit (your investment), Trade (Open and Close) Fee
3. Adjust the Position Size to suit your investment (Deposit)
- this is your trade size out to market
The Position Size can be can be adjusted by the following -
2.1 - dragging the slider with your mouse, or left/right arrow keys
2.2 - select and over-type text to manually input the value
2.3 - clicking up/down arrow keys
As the position size is adjusted, the Deposit investment, Trade Fee and Daily Fee will vary accordingly.
4. Choose Trade Leverage Option (from the Advanced Tab)
- we have selected 10:1
5. You are now ready to execute a Trade position
- click the Buy or Sell Button - depending on the direction you wish to trade
SELL = Short Trade | BUY = Long Trade
In this case you wish to open a Buy / Long Trade since you predict the price to increase.
- clicking the button will initiate a trade execution - indicated by spinning arrows
- A Trade Order in progress will appear on the Orders tab whilst a Direct Market Access* order is being placed on the chosen exchange.
*see note below
6. Your Open Position Summary
- Once a Position has been filled, it will appear on the Open Positions Tab
Real-time trade information can be shown as by clicking on the Open Position line to bring up a summary box.
As you see the market rise or fall in your favour, your overall profit (after any fees) will be shown for each trade position under the Net Profit column.
When you are happy with the profits you have earned, you can close your trade position by hitting the [Liquidate Button]
This will execute a Trade Close Order at the exchange.
*Some important notes on Trade Execution:
Direct Market Access (DMA) - since trade orders placed on Magnr Trading are DMA orders with the chosen exchange, once executed, these are irreversible. The Magnr trading engine does not in any way affect the returned price from the exchange.
Order Prices will be filled at 'best execution' directly on the exchange Order Book. The return of the trade execution price (Open Price), although extremely fast, is always subject to the speed of Order Book match and position fill on the exchange.
Where you may see a small difference between the expected price of a trade (Button Price), and the price executed (Open Price), this is referred to as Slippage. This can occur when placing an Open or Close trade order. During times of high market volatility, trade fill and returned prices are particularly sensitive to this phenomenon.