English
RussianWhat Is Margin Trading in Crypto?
Margin trading means trading with money borrowed from the exchange against your own funds as collateral — in other words, with leverage.
The money you commit is called margin. The exchange adds a loan, so the position is larger than your deposit by the leverage you choose. Profit and loss are calculated on the full position size.
If price moves against you and the margin can no longer cover the loss, the exchange closes the position by force. That is a liquidation, and the margin is lost entirely or almost entirely.
The higher the leverage, the closer the liquidation price is to the entry: at 10x a move of roughly 10% is enough, at 50x about 2%.
See it on In-Crypto
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Frequently asked questions
How is margin trading different from futures?
On margin you borrow the asset or cash on spot; with futures you trade a contract. The essence is the same: a position bigger than your deposit.
Can I lose more than my deposit?
Usually not on crypto exchanges: the position is liquidated first, and losses beyond the margin are covered by the exchange insurance fund.