#Margitrading
Margin trading means **borrowing money from the exchange or broker to trade bigger than your actual capital**.
👉 You trade with **leverage** (your money × borrowed funds).
* This increases both **profits** and **losses**.
* You pay **interest (funding fee)** on the borrowed money until you close the trade.
✅ **Key points of Margin Trading:**
* You put a small amount called **margin** (your own money).
* The exchange lends you extra funds.
* You can trade **long (buy)** or **short (sell)**.
* If your trade goes against you, your position can be **liquidated** (forced close).
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📌 **Example (Crypto Margin Trading):**
* You have **\$1,000**.
* You use **10× leverage**, so you can trade with **\$10,000**.
* If Bitcoin goes up by **5%**, your profit = **\$500** (instead of \$50 in spot).
* But if Bitcoin goes down by **5%**, you lose **\$500**, and your margin may get liquidated.
⚠️ Margin trading = **High risk, high reward**. Beginners usually lose money quickly if they don’t manage risk.
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