Anchor USD team has allowed ability to margin trade in the app. While this feature is in beta, users can already try it out and give their valuable feedback.
To get access to margin trading, you must do atleast 5 trades in the app. Once you have done that many number of trades, you will be automatically added to their beta program and gain option to margin trade.
Margin trading allows you to buy more crypto than you actually own. This allows you to buy crypto multiple times your original amount. This allows you to generate much higher ROI (return-on-investment) if your trade is on winning side. However, if your trade is on losing side or you hit a stop loss, then you would lose much more than your typically would.
In other words, you get more buying power and you will be able to trade positions larger than amount of cryptocurrency assets available in your Anchor USD account. This buying power is called leverage.
Example: If you use a leverage of 5x and you buy XLM worth 2,500 USD, and if XLM price increases by 20 percent, then your account balance will grow by 100 percent, giving you a profit of $500 and bringing total account balance to 3,000 USD.
Visit Anchor USD for more information.
