What is the meaning of buying on margin in the context of cryptocurrencies?

1 answers

• Anh Minh TranAug 26, 2023 · 2 years ago
  Buying on margin in the context of cryptocurrencies is a feature offered by some exchanges, including BYDFi. It allows traders to borrow funds to increase their buying power and potentially amplify their profits. When you buy on margin, you can open larger positions than your account balance would normally allow. However, it's important to note that buying on margin also increases the risk of losses. If the market moves against your position, you may be required to deposit additional funds to maintain the required margin level. Failure to do so may result in the liquidation of your position. While buying on margin can be a useful tool for experienced traders, it's important to understand the risks involved and to use it responsibly.
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