What Is Margin Trading in Crypto?
What Is Crypto Margin Trading? Margin trading is a trading strategy that trades with funds from a third party. Traders can borrow a great sum of assets to leverage their positions and largely amplify trading results to achieve large profits if the trade success. This strategy is quite popular in the traditional stock, international Forex, and commodity market. Now it is also widely used in cryptocurrency markets. In general, Crypto margin trading allows traders to borrow capital from other traders who earn interest from margin funds, or from the exchange(less common). How Does Crypto Margin Trading Work? When you went to make a crypto margin trade, you should deposit a small amount of capital, it is called "initial margin". A small amount of capital is used for borrowing a large capital to invest in the crypto market. So the "margin trading" also can be called "leverage trading". Leverage is defined as the ratio between browsing funds and margin. Differe...