/ Trading questions

Trading questions

What is liquidity?

The cryptocurrency market continues to take shape. One of the main indicators for it remains the liquidity of the asset. This concept applies to the availability and ease of exchanging a selected cryptocurrency (token) for other assets or cash. Liquidity, in its essence, is the ability to quickly cash out one's investment in cryptocurrencies.

What is volatility?

Volatility is defined as the rate at which the price of a security increases or decreases for a given set of returns. It indicates the risk associated with the changing price of the security and is measured by calculating the standard deviation of the annualized returns over a given period of time.

Read about Volatility

What is the leverage in crypto?

Leverage in trading refers to using borrowed capital to trade cryptocurrencies or other financial assets. It amplifies your buying or selling power so you can trade with more money than you currently have in your wallet. Depending on the crypto exchange you trade on, you could borrow up to 500 times your account balance (like on the EXEX platform).

The amount of leverage is described as a ratio, such as 1:5 (5x), 1:10 (10x), or 1:20 (20x). It shows how many times your initial capital is multiplied. For example, imagine you have $100 in your exchange account but want to open a position worth $1,000 in Bitcoin (BTC). With a 10x leverage, your $100 will have the same buying power as $1,000.

You can use leverage to trade different crypto derivatives. The common types of leveraged trading include margin trading, leveraged tokens, and futures contracts.

Trade with a deposit from $1 on leverages up to x500 on the EXEX Platform!

How to start trading on EXEX?

Cryptocurrency is a popular asset that has many advantages in the financial market: accessibility, functionality, speed of value transfer, and a wide range of tokens and digital currencies.

To start trading on the exchange, you must first register an account. Registration takes less than a minute. The next step is to fund your account. You can use a simple transaction from other crypto wallets or buy cryptocurrency directly from EXEX.

You can start trading as soon as the funds are credited to your exchange wallet. Read more about trading on EXEX in our article:

Trading terms every trader should know

Read a short article about the most important terms in crypto trading.

What are longs and shorts?

Both terms are connected to the position that traders open.

Longs are positions that you open when you expect the asset price to grow. Therefore, you buy it and hold the position until you can sell it at a higher price. Once the position is closed, the difference between the closing and opening price of the position becomes your profit.

Shorts are positions when you borrow some part of an asset to buy it later because you believe the price will decrease. Once you are ready to close the short position, you buy it at a lower price and keep the difference between the initial and closing price, which becomes your profit.

You can also use multipliers to increase your potential profit.

What is a bull and bear market?

Bulls are traders who expect the price to rise, enter into a contract to buy assets, and wait for the next rise to sell higher, profiting from the difference in value. The bulls stimulate the increase in asset prices.

How to read candlestick charts?

A candlestick chart is a visual representation of the size of price fluctuations. A trader uses a candlestick/diagram to identify a particular trading pattern to predict the short-term direction of a stock or asset value.

What are fundamental analysis and technical analysis?

Fundamental analysis is when you examine news and factors that might affect the asset. You can use different reports or even Twitter posts to estimate the potential of one or another cryptocurrency.

Technical analysis is about the following indicators’ signals. Usually, it involves a ton of literature exploring. On EXEX, we have made it all easy. You can see our indicators. For example, we have the RSI indicator. It shows in an easy-to-read form whether there is a signal to buy or to sell.

Overview of the Trade Page

Check the info about Trade Page

How to open a position on EXEX?

You can open a position in two directions: long (buy) and short (sell). Read instructions about it

How to trade futures?

Futures are a financial tool allowing traders to make speculative profits on assets without actually owning any asset. In crypto, we use cryptocurrency futures. Indeed, futures allow trading cryptocurrencies even though you don’t have to spend money on buying cryptocurrencies. Experienced traders mostly use crypto futures trading. Futures trading basic is learned gradually because this tool is riskier than classic trading. You can learn future trading only through experience and fundamental market study.

What is the minimum amount for a trade?

You can open a deal with a value of less than 1 USD. The minimum value can vary and depends on the asset you choose.

What is the best time to trade

Cryptocurrency trading is a 24-hour concept, not tied to the schedules of official financial markets, holidays, or restrictions. This is its strength and a feature that differentiates digital currencies from stock trading, for example.

Read our article about it here.

How much money can I make on the real balance?

Trading is a very responsible and delicate issue. You need to follow a trading strategy to understand how much and when you can earn. Today, there are many successful strategies. And, of course, traders discover new strategies for successful trading every day. In the dedicated Strategies section, we will publish various strategies used by traders all over the world.

When you gain enough experience, you will find your own strategy. If you have a great strategy that helps in trading, and you are willing to share it, feel free to send it to us – the best strategies will be published on EXEX on your behalf!

Read the Strategies section.

Where do you receive liquidity from?

EXEX is the exchange Platform, and we have our own liquidity that forms the market.

What is expiration time?

The expiration time is the time when the opened position becomes void and no longer has any value. Thus, positions with an expiration time are closed once that time is reached. That makes you always log in and log out of the position for the asset you like.

On EXEX, we have perpetual futures, which means that you can keep your positions open as long as you wish, and you won’t lose the profit because of the constant re-opening of the position.

What assets are available?

EXEX has more than 20 most popular Cryptocurrencies, such as BTC, ETH, BNB, etc. And we are in the process of adding more pairs!

If you have any suggestions, feel free to share them with our team. You can do that via any channel you can find here.

What are orders’ limits on EXEX?

In general, the size of the order is not limited.

When you open a deal, the maximum amount is calculated according to your available balance, the margin required, and the leverage you choose. The Platform reserves part of the amount (margin) to keep part of your investment safe in case the deal goes in an undesirable direction.

How to calculate profit and loss on EXEX?

You can calculate the profit for closed and opened positions and the position you are willing to open following the special formulas.

Can I use bots on EXEX?

We don’t have our own automated trading software (robots) yet. As well as we don't provide APIs.

In the future, an auto-following feature is going to be implemented. You’ll be able to choose the trader whose trades you want to follow and use it once it is available.

How to minimize trading risks?

The risk management part holds a special place in trading practice. For a proper understanding of the term, we should note that risk management on the EXEX Platform implies the correct on-exchange calculation of take-profit and stop-loss ratios to minimize potential losses and ensure your deposits against complete loss of funds in cases of severe market volatility.