<p>It does influence the order book. Margin trading is a 2-step process : </p>

<ol>
<li>you borrow currency A. This has no influence on the order book</li>
<li>You then sell currency A to buy currency B. This influences the order book.</li>
</ol>

CC BY-SA 4.0
2018-06-11T08:13:07.327Z
2018-06-11T08:13:07.327Z
Ben2209
<p>I'm not sure if this is the place to ask this, but I didn't know where else to go. I'm doing some crypto trading on bitfinex and I'm particularly interested in margin trading. </p>

<p>What I wonder about is the following: if I do a large margin trade (long or short), does that influence the order book? I mean; does a margin trade actually buy (or sell) the underlying assets? Or does a margin trade only buy a derivative (just like options) and thereby doesn't influence the order book of the underlying asset?</p>

<exchanges>
Does a margin trade influence the order book?
kramer65
# Does a margin trade influence the order book?

(Asked by: username_0 on 2017-07-07)

I'm not sure if this is the place to ask this, but I didn't know where else to go. I'm doing some crypto trading on bitfinex and I'm particularly interested in margin trading.

What I wonder about is the following: if I do a large margin trade (long or short), does that influence the order book? I mean; does a margin trade actually buy (or sell) the underlying assets? Or does a margin trade only buy a derivative (just like options) and thereby doesn't influence the order book of the underlying asset?

**Tags:** exchanges


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## 1 answers

### Answer by username_1 on 2018-06-11. Score: 1

It does influence the order book. Margin trading is a 2-step process :

1. you borrow currency A. This has no influence on the order book
2. You then sell currency A to buy currency B. This influences the order book.


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