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Things you should know about margin trading-WazirX

If you are a beginner in the crypto world and you have no idea about margin trading. Check this presentation that is all about margin trading. Learn more at https://wazirx.com/blog/guide-margin-trading-cryptocurrency/

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Things you should know about margin trading-WazirX

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  1. Things you should know about margin trading

  2. What is margin trading? • It is a trading practice which allows users to invest borrowed capital from a broker to invest in Crypto. An initial amount of investment is provided to the trader in exchange for a larger sum. This allows a chance for greater profits but at a higher risk.

  3. How does it work? • The dark side of margin trading is the high risk nature. While investing if the value increases, the profit grows rapidly. However, at the same time in case the value depreciates the losses will be much greater than the borrowed amount.

  4. What does margin call mean? • While asking for a borrowing or a margin from the trader, a minimum equity requirement needs to be met. While transacting if losses go below the invested amount in the account, a margin call is triggered and requires you to deposit more cash.

  5. Thank You

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