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What is margin trading?
What is margin trading?
Primex Finance avatar
Written by Primex Finance
Updated over a week ago

Margin trading is the process of borrowing funds to trade assets on an exchange. It allows traders to leverage their trading positions by using borrowed funds, which can potentially amplify their profits.

When engaging in margin trading, traders must provide collateral, such as their existing assets, as security for the borrowed funds.

Margin trading involves substantial risks as it amplifies both potential gains and losses. It requires careful risk management and an understanding of the market dynamics.

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