Welcome back to the Crypto Learning Campaign! 🎓
Today we’ll learn about Margin Trading — a way to trade using borrowed funds from Binance
🔹 What is Margin Trading?
Margin Trading allows you to borrow crypto to trade larger amounts than you own.
It can increase your potential profit — but also your risk of loss.
💡 Example:
If you have $100 and borrow $100 more from Binance (2x leverage), you can trade with $200.
If your trade wins, your profit is bigger.
If it loses, you still have to repay the borrowed funds.
Types of Margin Trading:
1️⃣ Cross Margin: Your entire margin balance backs all your trades — if one loses too much, it can affect all positions.
2️⃣ Isolated Margin: Each trade has its own margin — risk is limited to that single position.
⚠ Risks in Margin Trading:
❌ Losses can exceed your initial investment
❌ You must repay borrowed funds even if you lose
❌ Can lead to liquidation if the market moves against you
✅ Why Some Traders Use It:
Trade bigger amounts with less capital
Flexibility to go Long (price up) or Short (price down)
Useful for experienced traders with solid risk management
💡 Tip: If you’re a beginner, start with Isolated Margin and very low leverage (2x). Always set Stop-Loss.
🟡 Next Lesson: Understanding Binance Earn — how to earn passive income with crypto.
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