Margin trading

Margin is the money you initially deposit into your account in order to borrow more assets to trade with. Traders buy on margin to increase their trading power and leverage gains.

You wouldn’t normally borrow margin from a broker in crypto trading. The exchange or other traders would provide you with the funds instead, allowing them to earn interest based on market demand for this feature.

Margin is only a tool to create so-called leverage, which, is presented as a ratio of 3x, 20x, 100x etc.

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