Margin Trading
By CoinGecko | Updated on Mar 03, 2020
It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade. The borrowing requires you to collateralize a minimum value of your own assets. If during the trade, the market moves negatively to your trade, a margin call will takes place so that your trade account retains the ratio of your borrowed funds to the collateralized assets.
Related Terms
Public Keys
The alphanumeric string which serves as a public receiving address in cryptocurrencies.
Margin Call
Margin call takes place when investor's margin account falls below the required amount to stay afloat.
Shitcoin
A coin with no obvious potential value or usage.
Buy Wall
Anomalously large buy order(s) at a single price point that reflects as a "wall" in the order book.
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