Margin Trading

A maintenance margin is the amount of collateral a trader must hold to maintain an open position in a margin trading account. It is a percentage of the total value of the position and is typically set by the exchange. For example, if a trader wants to open a long position on BTC/USD with a leverage of 3x, the exchange might require a maintenance margin of 30%. This means the trader would need to hold 0.3 BTC as collateral to…

Crypto margin trading is a type of trading in which an investor borrows money from a broker or exchange to trade a larger amount of cryptocurrency than they would be able to with their funds. The idea is to increase the potential returns on trade, but it also increases the risk of losses. When an investor opens a margin position, they must also provide collateral, typically in the form of other cryptocurrencies, to the broker or exchange. The collateral is…