Margin trading (or trading on margin) is a specific type of trading that allows you to take leveraged positions (short or long) against underlying assets such as cryptocurrencies. Margin trading is trading with borrowed funds that must be paid back (often with interest).
Each Exchanges has its own specificities when it comes to margin trading, involving different leveraged positions options (from x2 to x150). Margin trading requires users to have a margin account (security deposit) on these Exchanges and can generate fast profits but also important losses (up to account’s liquidation).
Margin trading is considered relatively risky.
TradingBull does not encourage beginners to trade on margin. Therefore, TradingBull has separated the Margin Trading section from the Spot trading to minimize risks and avoid confusion.
To learn more about margin trade, you can refer to our Academy.