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What is Margin Trading?
Crypto Glossary Definition
The act of using borrowed funds from a financial institution to trade in a leveraged manner.
Why Margin Trading Matters
Margin trading means borrowing funds from an exchange to open a larger position than your own capital would allow, which multiplies both gains and losses. If the market moves against a leveraged position far enough, the exchange can force a liquidation, closing it out (often at a total loss of the margin used).
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