$XRP

Interest Costs. One of the important costs of margin trading is the interest charged on borrowed funds. When users borrow to open positions with leverage, they must pay interest per hour on the principal loan amount. The accumulated interest is automatically added to the total debt in the margin account. As this debt grows, it lowers the margin level of the account and increases the risk of liquidation. Over time, if the margin level falls too low without additional collateral or profitable trades, users face a higher likelihood of forced liquidation to cover their debts.