Understanding Margin Trading
Margin trading can be risky for inexperienced traders who may face a margin call if the market moves against their trades.
When a trader takes a “short” position on margin, they become a Margin Bear.
Conversely, when a trader takes a long position on margin, they become a Margin Bull.
Margin trading enables cryptocurrency traders to take larger positions and buy more cryptocurrencies than they could without margin trading.
To participate in margin trading, traders need a margin account, while regular cash accounts are sufficient for normal trading.
The margin amounts can vary, with traders able to borrow as little as 10% of the cryptocurrency position or even more.