Hi there! Today we will discuss margin trading.

The majority of crypto-exchanges do not offer this service, but on SwapZilla you can freely trade on every exchange with leverage.

In the crypto market, margin trading is organized in the same way as in the classic financial market. The trader uses borrowed funds (leverage) to buy an asset in anticipation that the price will go down.

Traders borrow an asset, sell it, and wait for the price of this asset to drop — then it buy it back and return it to the owner, pocketing the price difference. If asset’s price rises, the trader will have to buy it at a higher price — and incur losses.

SwapZilla decided to combine margin trading with yet another modern mechanism — p2p lending (“Lending to peers”). Users lend their assets to other users who trade with leverage. SwapZilla will facilitate this transaction. Lenders will be able to receive passive income.

To protect the lenders, SwapZilla will limit the number of margin orders the traders can make. These restrictions will depend on the size of the trader’s portfolio on SwapZilla account, and on the historical data on profit / loss from his transactions.

If you have questions about SwapZilla’s margin trading and active and passive income, write to us on info@swapzilla.co.

Stay tuned — next time we’re talking about arbitrage deals on SwapZilla.

You can find SwapZilla’s whitepaper and prototype here: https://www.swapzilla.co.

We offer our users to purchase the SwapZilla’s tokens, which will give them the right to use the platform, get cash-back on commissions and get a slice of our profits. You can purchase the SWZL tokens here: https://www.swapzilla.co/#form-investor