$ZEN WHAT DO YOU KNOW ABOUT MARGIN IN TRADING?

In trading, margin refers to the amount of money you need to have in your account to open and maintain a leveraged position. It is essentially a required deposit that allows you to control a position of greater value than the capital you have. Margin is not an expense, but rather an amount of money that is reserved or locked in your account while the position is open, and it is released once you close it.

To understand it better, let’s suppose you are offered a job where you will spend B/18.⁰⁰ daily (transportation, snacks, lunch) and you will earn B/40.⁰⁰ on workdays. Do you find it attractive?

Now imagine that you are offered another opportunity elsewhere where you will only spend B/1.90 daily (transportation, snacks, lunch) and you will earn B/40.⁰⁰ on workdays.

Which of the two offers would you choose?

Of course, the one where you spend less if you are going to earn the same amount in the end.

Well, the same happens in trading. There are assets that require little margin and you earn the same as if you were trading with BTC, ETH, BNB, etc., etc., etc. Did you know that? Well, it’s just a matter of grabbing pen and paper and taking note of all that you can. You might be in for a big surprise.