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
Wallet
Software client that handles storage of cryptocurrencies and allows users to send cryptocurrencies.
Central Bank Digital Currency (CBDC)
It is a digital fiat currency issued by the central banks, contrary to cryptocurrency that issued by non-legislative party.
Bear Market
Contrary to bull market, it indicates the direction of the market going for downward trend.
Block Explorer
Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
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