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#TradersLeague Margin trading is a type of trading where investors borrow funds from a broker to trade financial assets, such as stocks, cryptocurrencies, or forex. This allows traders to open larger positions than they could with their own capital alone. The borrowed funds act as leverage, amplifying both potential profits and potential losses. To begin margin trading, a trader must deposit a minimum amount known as the "initial margin" and maintain a certain equity level, called the "maintenance margin." If the trader’s account value drops below the required maintenance margin, the broker may issue a margin call, requiring the trader to add more funds or sell assets to cover losses. While margin trading offers the opportunity for higher returns, it also involves significant risk, especially in volatile markets. It is typically recommended for experienced investors who understand the mechanics of leverage and have a solid risk management strategy. Proper knowledge and caution are essential when engaging in margin trading.