Trade Bitcoin Trading

About Bitcoin Crypto Currency

Bitcoin is a term that is commonly used by bitcoin trading investors and traders to describe activity in the btcusd market that is carried out by traders, investors & speculators.

In btcusd trading a bitcoin trader can buy/sell crypto. One will buy bitcoin if they think the value of the crypto instrument is likely to appreciate in the future. A Bitcoin Trader will sell bitcoin if they think the value of the crypto instrument is likely to depreciate in the future.

The Bitcoin Market is an over the counter market which means trading is carried out through a network of the big international banks; this bitcoin trading network is commonly referred to as the interbank network. This interbank bitcoin trading network consists of banks & brokers which are in different locations. These interbank network is responsible for providing the bitcoin prices at any particular time to the bitcoin traders & other market participants that want to buy or sell bitcoin crypto. In bitcoin trading the btcusd price is constantly changing and this bitcoin price is denoted by what is known as a BTCUSD Quote. In Bitcoin the Crypto Price is displayed as a Bitcoin Quote. This quote is constantly changing and the interbank network will update automatically the current btcusd quote and traders can then trade the at the current price.

Bitcoin Quotes

Bitcoin prices of instruments is displayed using Bitcoin Quotes. This is the bitcoin price at which any bitcoin trader wanting to trade bitcoin will trade at.

Because bitcoin prices are constantly changing it means that traders can take advantage of these bitcoin price moves to make profits by trading these bitcoin price movements. The bitcoin price of any bitcoin instrument will keep moving because of demand supply. This is because there are many participants cryptocurrency instrument in the open market ==22==and therefore this means that the bitcoin price quotes will get determined by the current market forces. These market forces may be determined by factors such as an increase in demand for bitcoin crypto.

Bitcoin Pips

In trading the bitcoin price movements are measured using points commonly known as Pips in the btcusd market. The pip is used in calculating the profit or loss that a Bitcoin Trader makes in a particular trade. For illustration if a btc/usd trader makes a trade which moves 50 pips in his direction, then the profit of the trader will be calculated as 50 bitcoin trading pips. Pip in btcusd trading is represented as the second last decimal point in the Quote & ==22==it--isit's made up of pipettes - pipettes are fractions of a Bitcoin Pip.

Bitcoin Lots

In trading - bitcoin is traded in units known as crypto lots or bitcoin trading contracts.

BTCUSD Leverage

Because not many traders can afford to trade large units of bitcoin trading contracts, there is bitcoin trading leverage in bitcoin trading which means that the traders can borrow money and use the borrowed money to make trades with. For illustration leverage of 5:1 means that a trader with capital of $10,000 can borrow up to 5 times using the 5:1 leverage option and therefore after borrowing using this bitcoin trading leverage the trader will have a total of $10,000 multiplied by 5, which means the trader will have a total of $50,000. This leverage is what makes Bitcoin accessible to retail bitcoin traders because retail traders can start with little capital of their own and use bitcoin leverage to borrow the rest of the money required for trading. Money that the trader deposits is referred to as a bitcoin trader’s margin and ==22==a--traderone can continue borrowing money using this leverage option as long as they have the required bitcoin trading margin in their account. This is why BTCUSD traders must have the required bitcoin trading account balance in their account to open the transactions they want to.

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