đ Binance Learning Session â 11
What is Margin Trading?
Margin trading lets you borrow funds to trade larger amounts than you own. This increases both potential profits and risks.
Hereâs how it works:
đč Leverage â Trade with borrowed money (e.g., 3x, 5x).
đč Collateral â Your crypto is used as security for the loan.
đč Liquidation â If the market moves against you, your collateral can be lost â ïž.
â Example: With 2x leverage, $100 becomes $200 in buying power. Profit doublesâbut so can losses.
â ïž Margin is for experienced traders only. Beginners should master Spot first.
đ Next session: Futures Trading Deep Dive (Leverage, Long & Short Positions)
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