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
Bounty
Public tasks available for anyone for a reward
Wallet
Software client that handles storage of cryptocurrencies and allows users to send cryptocurrencies.
Derivatives Market
A market for derivatives which are instruments such as futures or options whose value is derived from an underlying asset.
Liquidity
The ease of which cryptocurrency can be bought and sold without impacting the overall market price.
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