Difference between Trading and Margin Trading
Here's the difference between them:
Trading is the usual purchase and sale of cryptocurrencies on the spot market using your own funds.
Margin trading is trading using borrowed funds (margin) from a broker or exchange.
1. When trading, you only risk your capital.
2. When trading on margin, your risks increase due to the use of leverage.
3. Trading is safer, but the potential profit is lower.
4. Margin trading is more risky, but allows you to make greater profits.
5. To trade, it is enough to have an account on the exchange or in the application.
6. For margin trading, you must open a special margin account.
7. When trading, you fully own your assets.
8. When trading on margin, part of the assets belongs to the broker or exchange.
Margin trading is suitable for experienced traders who are ready to take increased risks for greater profits. Beginners are recommended to start with regular trading.
What do you think about this?
Write in the comments and support this channel!
