Margin trading (or leverage trading) is a method of trading where users deposit an amount of assets to a third party or exchange as the margin, in exchange for a loan amount a few times their original amount, so that they can actualize more profit with smaller capital. Users must be aware, however, that as they leverage the margin, though they may gain more profit, they also bear higher risk of loss. Users are hence advised to fully understand the risks that come with margin trading before they proceed to trading.
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