How does leveraged litecoin trading work?
Buying (or ‘going long’ on) litecoin contract for differences (CFDs) can share similarities to buying LTC on an exchange; your position will increase in value as litecoin’s price increases (usually against the US dollar). However, there are also several key differences between the two.
Firstly, when you open a leveraged litecoin trade, you aren’t actually taking ownership of any cryptocurrency. Instead, you’re speculating on the direction in which its price is headed. So you don’t need an exchange account to get started, and you can open short positions as well as long ones.
Secondly, you don’t have to put down the full value of a leveraged litecoin position upfront – just a deposit known as 'margin'. While that makes leveraged trading a powerful tool, it also makes it risky. If your position moves against you, it can even mean that you risk losing more than your original deposit.