What is margin trading
In short: Margin trading means trading with leverage: the broker or exchange adds borrowed funds, so your position is bigger than your deposit. Leverage magnifies profit and loss equally, and a strong move against you leads to a forced close.
Example
A $100 deposit at 1:10 leverage gives a $1,000 position. A 5% rise brings +$50; a 5% fall brings −$50 — half your deposit.
How to use it safely
Size the position from your risk per trade and the distance to the stop. Then leverage is just a result of the calculation, not a way to risk more.
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Trading on financial markets carries a risk of losing money. This material is educational and is not investment advice.
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