Margin trading refers to the practice of borrowing funds from a broker or an exchange in order to trade financial assets such as stocks, bonds, currencies, or cryptocurrencies. Margin trading allows investors to leverage their capital and increase the potential profit on their trades, but it also increases the risk of losses. When an investor engages in margin trading, they put up a certain amount of their own funds as collateral, known as the initial margin. The broker or exchange then provi...
