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  1. Home
  2. /Glossary
  3. /Margin
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trading

Margin

Borrowed money used to increase trading position size.

Definition

Borrowed money used to increase trading position size. Margin trading amplifies both gains and losses. A 10x margin position means a 10% move against you wipes out your capital.

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Related Terms

Leverage

Borrowing funds to increase your trading position beyond what your capital alone would allow.

Liquidation

When a borrower's collateral is forcibly sold because their position became too risky.

Collateral

Assets you put up as security when borrowing.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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