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Crypto Terms:  Letter M

What is Margin Trading?

Meaning:
Margin Trading - a method of trading cryptocurrencies in which a trader borrows funds from a broker.
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Let's find out Margin Trading meaning, definition in crypto, what is Margin Trading, and all other detailed facts.

Margin trading might be dangerous for new traders since they could face a margin call if the market goes in the opposite way of their transactions.

However, margin trading allows cryptocurrency traders to acquire considerably larger positions and purchase larger quantities of cryptocurrencies, which could not be feasible without other types of trading.

Since margin levels vary, a trader can borrow as low as 10% of the cryptocurrency holding or more. To participate in margin trading, users are required to have a margin account. Besides, trading under typical conditions necessitates a consistent cash balance.

There are two labels for margin traders – margin bear and margin bull. A margin bear is a label given to a trader who goes "short" on margin. A margin bull, on the other hand, is the label given to a trader who goes long on margin.