The main difference between trading with leverage and without it is only in what amount you dispose of. But, this will depend on your profit. Yes, you can trade using only your own funds, however, if they are limited, it will limit your ability to make transactions.

At the same time, leverage allows a trader to make transactions for amounts that are many times higher than his own capital. As a result, the trader can trade on the exchange amounts significantly larger than the trading deposit allows in the absence of leverage.

It is convenient and profitable. What do we offer? We offer loans secured by our own funds and/or based on our credit profile on FinWhaleX for trading in financial markets.

Since we keep the credit history of users, calculate their risk profiles, monitor the current status of loans issued, it becomes easy to demonstrate your decency and reliability through credit history or your profile for the borrower-trader.

Let’s see how it works with an example.

Trader T has Ethereum foe 300 USD at the exchange E. On the basis of their credit profile on FinWhaleX and secured their own Ethereum on the exchange, T receives from the user F on our platform a loan of USD 300 at the rate of 12 X% in Y days. Now T can buy on the exchange bitcoin in the amount of 300 USD. In this case, T is the borrower, F is the lender. Trader T has the right to repay the loan (with the corresponding interest) ahead of schedule.

Getting a loan does not oblige T to buy bitcoin. In addition, T may at any time be re-credited to other lenders on more favorable terms. If T bought bitcoins with borrowed 300 USD and the value of funds on his balance fell, for example, by 10%, then exchange E notifies the borrower and asks (Margin Call) him to make additional security (pledge) or liquidate part of the position, i.e. to sell part of the purchased bitcoins.

If the borrower does not do this and the value of the funds on his balance falls by another 5%, the exchange forcibly and completely liquidates the trading position of T, returns to the lender F the loan amount and interest on it, and the balance returns to T. If the market value of the trading position of T rises, he will be able to profitably sell his bitcoins, return to the lender the loan amount (300 USD) and interest for using the loan. Trader T can also withdraw the profit from the transaction from the exchange, but in such a way as not to violate the initial conditions of the loan.

Learn more about getting leverage on: https://finwhalex.com