What is the difference between Margin and Futures trading?
Updated
Futures trading is always superior to Margin trading because it provides:
More Leverage:
Future contracts allow much higher leverage than the maximum leverage allowed in Margin trading. On CoinDCX, crypto Futures can be leveraged to as high as 15x whereas margin trading is capped to 5x.
More Liquidity:
Margin trading is a borrowing market which is hard to build, and as a result, has lower liquidity. Future markets are more liquid than spot markets since they are free of this limitation and are easy to develop.
No Cost of Interest:
Futures contract will either trade at a premium or discount. There are no costs of interest involved in holding the Futures. In the case of Margin trading, CoinDCX offers interest-free Margin trading for the first 1 hour and charges a minimal percentage per day thereafter.
