How Does Margin Trading Work?

When you trade on margin, you get two basic options:

Long Position (Buy): If you believe the price of a cryptocurrency will increase, you buy it on margin to sell later at a higher price.

Short Position (Sell): If you think the price will decrease, you sell it on margin and buy it back later at a lower price to make a profit.

The key factor here is leverage. For example, if you have $100 and use 5x leverage, you can open a trade worth $500. Leverage multiplies both profits and losses, making it a powerful but risky tool.

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