AAVE/USD: Trade AAVE to US Dollar
AAVE/USD is a currency pair that shows how many USD is needed to buy 1 AAVE, meaning USD is a quoted currency, while AAVE is a base currency. The AAVE/USD chart is a graphic representation of the currency pair price movement history. Each candlestick on the chart reflects a price change in a specific timeframe.
Why trade the AAVE/USD pair?
Aave is a decentralized platform that allows you to lend, borrow and earn interest on numerous crypto assets. It has quickly become the top DeFi project on the crypto market in terms of the total value of crypto locked in its protocol. AAVE token is used for platform operation and has received significant support from the community.
The AAVE/USD currency pair has rapidly become one of the most popular among DeFi coins’ traders due to high price volatility and project achievements.
How to start trading AAVE/USD on CEX.IO Broker?
CEX.IO Broker allows you to trade AAVE/USD on margin using a broad range of leverages and numerous trading instruments. To begin with CEX.IO Broker, first of all, you need to register an account and choose the account currency. There are three available account currencies — BTC, ETH, USDT — that you can use for depositing your trading accounts.
Then set the leverage for your account. For AAVE/USD trading, you can use the leverage from 2x to 100x. In order to change the leverage, you can just create another trading account. In general, you can manage up to 10 trading accounts on CEX.IO Broker with different account currency and leverage.
Finally, add funds to your trading account with selected account currency, choose the appropriate market, for example, AAVE/USD, and start trading.
How to trade AAVE on margin?
CEX.IO Broker provides users the possibility to trade on margin by using derivatives called Contracts for Difference (CFDs). With CFDs, you can benefit from price movements without the need to own the underlying asset.
CFD trading means opening and closing Long and Short positions. If you open Long positions and the asset price moves upward after that, then you can get profit. But in the case of a price drop when a Long position is open, it means a potential loss for the trader. A Short position works the opposite of a Long position. It allows you to benefit from the price movement downward. To fix the trading result, traders have to close the position.
It’s important to notice that all trading operations on CEX.IO Broker include pre-determined leverage for the trading account. For example, if you use 2x leverage for trading, then you can double the amount of available funds by borrowing funds from CEX.IO Broker. Leverage allows you to multiply potential profit if the price movement successfully corresponds to an open position. But when the price moves in the opposite direction to your position, leverage increases potential risks.
What order types can be used for AAVE/USD trading?
When trading with CEX.IO Broker, it is possible to choose between four order types that can be used for different purposes and trading strategies.
- 1. Market order — allows buying/selling an asset at the current market price, executes instantly, can’t be canceled.
- 2. Limit order — allows setting the price to buy or sell with, fills when the price reaches a predetermined level or better, can be canceled before execution.
- 3. Stop order — works the same as limit order but can be executed only at the specified price.
- 4. One-cancels-the-other (OCO) — allows opening two orders (limit and stop) simultaneously, only one can be filled, another one cancels automatically after execution of the first order.
What trading tools can help benefit from AAVE/USD trading?
Analyzing the market situation is one of the best ways to make well-informed decisions that help adapt trading strategies to always changing market conditions. That is why the CEX.IO Broker terminal has a built-in interface for technical analysis indicators and oscillators. Tech analysis can help traders find the most appropriate entry points and evaluate price movement potential.
If you trade following a specific strategy or don’t want to monitor the price chart all the time, then consider using protection orders like Stop Loss and Take Profit on CEX.IO Broker. With these orders, it is possible to close positions automatically when the price reaches a specified level. Stop Loss and Take Profit can be placed, modified, and canceled anytime until the position is closed.
Another feature of the CEX.IO Broker platform is that it uses a combination of isolated and cross margin. Isolated margin means that trading accounts on CEX.IO Broker are independent in terms of margin and financial results. Such an option helps to localize risks and make trading flexible since you can use different strategies on different accounts. Cross margin allows using the balance and profit of one position to satisfy margin requirements for another position. This works only for operations within one trading account.
CEX.IO Broker: solution for both beginners and experienced traders
CEX.IO Broker platform was designed to be a great option for any type of trader regardless of trading experience. For example, before starting trading on the Live account, traders can use a demo account. It can be helpful for beginners to take the first steps in margin trading and get acquainted with the terminal capabilities. Experienced users may use a demo account for testing new strategies on a specific market in a reliable place.