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Margin Trading

Borrowing funds from an exchange to trade larger positions and amplify profits — or losses.

Margin trading lets you borrow money from an exchange
to trade with more capital than you actually have.

It’s a tool that can amplify profits — but also magnify losses just as fast.
If the market moves against your position, your account can be liquidated.

How it works

  1. You deposit collateral (like USDT or BTC).
  2. The exchange lends you extra funds to open a bigger trade.
  3. You repay the loan plus interest after closing the position.

Example

If you have $100 and trade with 5× leverage,
you’re controlling $500 worth of crypto.
A 10% gain becomes 50% profit — but a 10% drop wipes you out completely.

Types of margin

  • Isolated margin — risk limited to one position.
  • Cross margin — all your balance backs all positions (higher risk).

💡 Lanzo Tip

Margin trading is for experienced traders only.
Never use high leverage on volatile coins — one quick spike can erase your position in seconds ⚠️