Margin Trading

Margin trading? Yes or no? margin trading involves using borrowed funds to trade, yes its exactly as ut sounds with margin you can literally trade with funds that you do not own personally, these funds are provided to you by a third party but should you trade margin? Margin accounts allow traders to have greater amount of capital at their disposal exponentially increasing possible profits by allowing people leverage their accounts. How does it work? To begin a margin trade, you will be required to bring a small percentage of the funds upfront, this percentage is known as margin. Now with this margin you have leverage to trade more for example if you bring a 100$ upfront, with a 10 to 1 margin, you can then trade with 1000$ this will naturally increase your chances of profits, however in the same way your losses are multiplied so much so that you could even end up owing the exchange more than your initial investment, although most exchanges will protect themselves from that by closing your position. Margin trading is certainly not for begiinners especially considering the volatility of cryptocurrencies,