How does litecoin leveraged trading work?
Buying (or ‘going long’ on) litecoin via leveraged trading works in a similar way to buying LTC on an exchange: you open a position that increases in value as litecoin’s price increases (usually against the US dollar). But there are 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.