Margin trading lets investors amplify their market exposure by borrowing funds from Bitpanda, allowing them to trade assets beyond their own available capital. This additional leverage can potentially lead to higher profits, but it also increases the risk of significant losses of the entire initial investment.

Let’s say you want to open a long position worth €1,000 in Bitcoin (BTC), but you only have €200. With 5x leverage, you can contribute €200 as margin – your collateral – and borrow the remaining €800 from Bitpanda. If BTC rises 10%, the €1,000 position increases by €100. That’s a 50% gain on your initial margin. But if BTC falls 10%, you lose €100 – a 50% loss.

While potential benefits can be higher, margin trading involves higher risk and so higher potential losses of your entire investment. It’s best suited for experienced and risk-aware traders who can afford to lose their entire investment.

You don’t need to be a pro, but basic trading knowledge is recommended. Bitpanda provides clear indicators and tools to help you trade more confidently. Before using margin to trade crypto, please take time to do your own research and fully understand the unique risks involved.

Bitpanda Leverage refers to the existing leveraged token offering prior to Bitpanda Margin Trading, which is a Contract for Difference (CFD) with daily re-leveraging with a maximum of 2x.

With Bitpanda Margin Trading, traders buy and sell the real crypto asset (i.e Bitcoin or Ethereum) with leverage exposure up to 10x, giving traders more exposure to potential benefits but also risk of losses.

Yes, unlike futures and derivatives trading, spot margin trading involves buying or selling the actual crypto assets.

Bitpanda Margin Trading has a 0% buy fee, a daily fee of 0.18% which is charged proportionally every 4 hours and a 0.3% sell fee applied on the closed amount. If you do not manage your position and are liquidated, an additional liquidation fee of 1% will apply.

Depending on the asset, there are 2x, 3x, 5x and 10x leverage ratios. Bitpanda Margin Trading provides different leverage ratios based on how liquid an asset is. In simple terms, liquidity refers to how quickly and easily a crypto asset can be traded without causing major price changes. So with Bitpanda Margin Trading you can access up to 10x leverage on popular crypto like Bitcoin, Ethereum, and XRP due to their high trading volume. For less actively traded assets, leverage is lower to protect you from sudden price changes and to ensure smooth order execution.

We are working towards offering short selling soon, stay tuned.

You don’t need to buy stablecoins before starting the margin trading flow. Stablecoins are required to open a margin position, but an automatic swap to EUR stablecoin will be performed at 0% fees when you proceed with the trade within the margin trading flow.

We are working towards integrating Bitpanda Margin on Fusion soon, stay tuned.

Bitpanda Margin Trading is available on all your devices including mobile and desktop.

Yes, Bitpanda Leverage will still be available.

You can open and close margin trading positions using a market order.

Take profit and Stop Loss orders will also be made available soon after launch.

When a liquidation is triggered, Bitpanda will automatically close your position. Any remaining crypto assets that remain by the end of the liquidation process, will be transferred to your crypto wallet on your Bitpanda account.

Your liquidation price is the price of the underlying asset, by which you position margin level will reach the liquidation threshold.

Your position margin level is the ratio between your position value and your borrowed amount.

Margin Level = Position Value / (Borrowed Amount + Daily Fees)

Bitpanda will send you an email and push notification prior to liquidation, to allow you to improve your position health and avoid liquidation.

If you do not manage your position and are liquidated, a liquidation fee of 1% will apply in addition to the closing fee.

You can avoid a liquidation by increasing your position value. Adding to your existing position can improve your margin health. Additionally, partially closing your position helps you reduce risk and exposure on the liquidated amount.