What is margin trading?

What Is Margin Trading?

Margin trading means borrowing money (or crypto) from the exchange to open a position larger than your balance. For example, with 2x margin you could open a Rs 2 lakh position with Rs 1 lakh. If the price moves in your favor, your return is amplified. If it moves against you, you can lose more than your initial amount and may be liquidated. Margin is advanced and risky. Beginners should avoid it until they understand risk management. In India, margin products may be limited; check your exchange and tax treatment.