What is margin trading? All about margin trading.

Hello @everyone I hope you will be fine and good. As we know that steemit Crypto Academy is going on as the hard working crypto professors are providing their best lectures and teaching the students. And the students are attending lectures and making homework posts and on the other hand they are also getting rewards besides to learn.

So today I have also attended the lecture of professor @stream4u about the Margin Trading & Crypto Leveraged Tokens Trading. I also do spot trading but I was curious to learn about the margin trading and Crypto leveraged tokens trading. Do the steemit team provided a well chance to learn about this in the firm of the most influential lecture from the professor stream4u.

Source

As the homework task is about the trading si first of all I want to explain the term trading. Trading is the simplest term which indicates the buyer Ng and selling of things for benefits and profit. It is also known as the exchange of things between the two parties. If someone want to buy a thing and the other want to sell that thing at that time. If they do a commitment and exchange their assets each other then this transfer of assets is known as the trading.

What Is Crypto Margin Trading?

There are different types of trading and all these types have their own benefits and uses according to the conditions of investment and your abilities. Similarly, Crypto Margin Trading is another important type of trading.

In some cases the investors do not have much investment but they want to trade with huge investment to gain more profit. But there is still an option to increase their investment by borrowing assets from other crypto traders. And this trading is known as margin trading.

Margin trading has become very popular as it the fastest way to increase the investment. But it is the fact it is not always followed by our desires. Due to its demand there are many chances of margin trading with different margins offered by the different brokers and traders.

These brokers and traders offer different margins accordingly and charge fee for their assets. And the traders pay fee for the borrowed asset. There are different margins which are offered such as 3x. It means if you invest and do margin trading with the margin of 3x then if the price goes according to your desire then you will get a profit 3x.

Suppose you invest $10 and do margin trading with the 3x margins then you will get $30 and similarly of the market goes against your desires and predictions you will lose your $30.

So it is all about margin trading.

I was writing my homework but I was late to submit it do I am publishing here a small portion one question of that homework.

Cc: @rashid001