What are the risks of trading margin that must be known by crypto traders?

[Suba]

Trading margin is one type of crypto trading where traders can raise their capital by borrowing from a broker, so he will have a greater capacity to make profit, but behind it he also has a greater risk of loss. So when I trade margin, even though I only have a capital of $ 500, it can be doubled into several times, for example 3 times.

Are some of the terms that we must understand in trading margins such as: initial margin, leverage, margin call and liquidation.

 

[gwolf666]

Margin trading is when you borrow money from a broker to trade with more capital than you have, which can increase your profits but also your losses. Important concepts include initial margin (the amount you must put up), leverage (how much you can multiply your capital), margin call (a notice to add funds), and liquidation (an automatic sale if you lose too much).