Margin Trading
By CoinGecko | Updated on Mar 03, 2020
It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade. The borrowing requires you to collateralize a minimum value of your own assets. If during the trade, the market moves negatively to your trade, a margin call will takes place so that your trade account retains the ratio of your borrowed funds to the collateralized assets.
Related Terms
Off-chain
It refers to transactions occuring outside the blockchain and executed instantly.
Frontrun
To intercept a particularly large AMM buy order for the purpose of purchasing an reselling the assets back to the buyer before the order transaction is mind on the blockchain.
Bakkt
Bakkt is a company developed by the Intercontinental Exchange (ICE), owner of the New York Stock Exchange. It specializes in Futures/Options contracts for cryptocurrencies.
Initial Coin Offering (ICO)
Initial Coin Offering (ICO) is the equivalent of Initial Public Offering (IPO), where a company/cryptocurrency venture raises funds through crowd sales.
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