What is Margin Trading? And is it suitable for beginners?

💡 Lesson 8:

Margin trading is a method that allows you to trade with amounts larger than your actual balance by borrowing funds from the platform.

🔹 Simple Example:

If you have $100 and decide to use a 5x margin, you can open a position worth $500.

🔸 Advantages:

– Potential for greater profits

– Diversification of trading strategies

🔸 Risks:

– You could lose your entire capital quickly

– Liquidation occurs if the market moves against you

⚠️ Margin trading is not recommended for beginners, as it requires strong expertise in risk management and market behavior.

---

✅ Summary:

📌 Do not start with margin before fully understanding how it works. Start with a demo account or spot trading first.

📌 In the next lesson: What is the Cardano project? And why does it stir controversy?