Meet Coin-Margin at Storm Trade
A new stage in the world of cryptocurrency trading: Coin-Margin on Storm Trade provides unique opportunities for traders.
Storm Trade, a leading futures trading platform on TON, is pleased to introduce an innovative tool to its users – Coin-Margined futures. This new functionality allows traders to increase their income by trading not only stablecoins, but also other coins as collateral.
Storm Trade is an innovative exchange for trading futures with leverage, available for use directly from Telegram messenger. Keeping up with the times and providing all the best technologies to its users, Storm is releasing a major update – Coin-Margin, which will change the way you trade!
What is Coin-Margin?
Many futures platforms, including Storm Trade, typically trade in stablecoins. However, Coin-Margin opens the door to trading using other coins as collateral. This gives traders more flexibility, variety and the ability to profit from even small price changes.
Advantages of Coin-Margin transactions:
1.Selecting a Coin to Trade: You now have the option to choose between two of the coins as collateral – jUSDT or TON.
2.Trading without selling assets into stablecoins: Coin-Margin allows you to trade without converting your assets into stablecoins.
3.High Profits on Small Price Changes: Traders can make high profits even on small price movements.
4.Protection against losses in a falling market: Coin-Margin provides risk hedging for traders even in a falling market.
New trading pairs and opportunities on Storm Trade:
With the launch of TON-Margin orders on Storm Trade, a new trading pair has already been released – TON/USD-CM. The first coin to become collateral is Toncoin, opening up new opportunities for traders, stakers and holders in the TON ecosystem.
Later, users of the platform will see the expansion of trading pairs such as BTC/USD:TON and other collateralized instruments.
Examples of using Coin-Margin:
Example 1 – Long order on price increase. Trader Bob decided to open Long order thinking that the price of TON will rise. He put 100 TON as collateral (200 USD at the rate of 2 USD for 1 TON) and leveraged his position 10 times.
Of course, Bob must pay a commission on his position and may also receive or pay funding payments depending on how the price moves. But we won’t talk about this, so as not to complicate the example.
The price of TON actually doubled, that is, by 100%, from 2 to 4 USD.
How much will Bob earn if he closes his position?
We use the formula to calculate profit or loss for orders with coins as collateral: Profit or loss = Price direction * Collateral * Start price * Leverage * (1 / Start price – 1 / End price)
Price direction: Long = 1, Short = -1
Applying the formula above, we get:
1*100*2*10*(1/2 – 1/4) = 500 TON, which means that he increased his TON deposit by 5 times.
And now the secret of trading with coins as collateral: when the price of TON doubled, its income also increased, amounting to 500 * 4 = 2000 USD.
At the same time, Bob did not sell his TON to place a position, but used them as collateral, multiplying his capital along with receiving income from the position!
Example 2 – Long order on price decrease. The same Bob placed the Long order thinking that the price of TON would rise. He put 100 TON as collateral and leveraged his order 10 times.
But this time the price of TON fell rather than increased.
In this case, Bob’s position will be liquidated when the price of TON becomes 1.818 USD per 1 TON.
This is because when the price of TON falls, the value of its collateral falls, and the liquidation price of the order inevitably approaches.
Example 3 – Short order on price increase. In this example, Bob decided to open a Short position thinking that the price of TON would fall. He put 100 TON as collateral (200 USD at the rate of 2 USD for 1 TON) and doubled his order using leverage.
The TON price increased from 2 to 3 USD.
You might think that Bob’s order should be liquidated, but here we are again exposed to the secret of trading with coins as collateral. When the price of TON rises, so does the value of its collateral, which pushes back the closing price of the order and helps the trader close their position with a small loss rather than a complete loss.
Yes, that’s how it works!
Example 4 – Short order on price decrease. In this example, Bob decided to open a Short position thinking that the price of TON would fall. He put 100 TON as collateral (200 USD at the rate of 2 USD for 1 TON) and leveraged his position 10 times.
The price of TON has really dropped.
Bob, realizing that his coins had gotten cheaper, made money on his Storm Trade Short position and recouped his wallet losses while still having the initial amount of TON in his wallet plus the TON he received from the profitable position.
So, friends, in this article we learned that Coin-Margined futures are an excellent tool for increasing trading income, protecting against losses in a falling market and diversifying your trading strategies.
Great times are coming to TON and Storm Trade aims to become the best platform for DeFi products in the system. If you’re wondering when to start, start now.
Don’t forget about risk management, trade with an amount of funds that is convenient for you, learn new things and expand your trading experience with Storm Trade!
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Organization: Storm Trade
Email: storm.trade.ton@gmail.com
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Website: https://storm.tg
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Funds Pulse journalist was involved in the writing and production of this article.