Trading Bitcoin can be fun, but it can be extra fun if you can use leverage in your trades.
“Trading on margin” or “Trading with leverage” simply means that the exchange will let you trade with more money than you actually have in your account.
This video explains how to Margin Trade on Bitfinex.
For example: Bitfinex gives you 3 to 1 Margin. That means if you have $1000 in your account you can trade with $3000 worth. This helps you gain more profits if the market turns out in your favor. It is kind of a double edged sword though, because, if the market does not go in your favor, you can lose money. If it goes too far out of your favor, the exchange will liquidate whatever money you have in your account. This is called a Margin call.
People use the term “Going Long” when they use leverage in anticipation of the price rising. The term “Going Short” means you use leverage in anticipation of the price falling. (Yes you can make money if you think the price will be dropping).
So if you are just starting out, with trading bitcoin, make sure you start slow with small amounts to get a feel of the market. The Bitcoin market is still pretty small and there can be wild unpredictable swings.
Try out Bitfinex here to get started. As long as you only use Bitcoin to send money in and out, you do not need to verify your ID with them. They have been around for many years and are one of the most popular Bitcoin exchanges in the world.