What is the difference between margin and free margin in cryptocurrency trading?

3 answers

• Dec 18, 2021 · 3 years ago
  Margin and free margin are two important concepts in cryptocurrency trading. Margin refers to the amount of funds that a trader needs to deposit in order to open a leveraged position. It acts as collateral for the borrowed funds. Free margin, on the other hand, is the amount of funds that are available for new trades after accounting for the margin used in open positions. It represents the trader's available buying power. Understanding the difference between margin and free margin is crucial for managing risk and determining the maximum leverage that can be used in trades.
  579290
• Dec 18, 2021 · 3 years ago
  Margin and free margin are like the Batman and Robin of cryptocurrency trading. Margin is the superhero that allows you to amplify your trading power by borrowing funds, while free margin is the sidekick that helps you keep track of how much buying power you have left. Just like Batman and Robin work together to fight crime, margin and free margin work together to help traders take advantage of market opportunities while managing risk. So, remember to always keep an eye on your margin and free margin levels to ensure you're making the most of your trading superpowers!
  574192
• Dec 18, 2021 · 3 years ago
  Margin and free margin are terms commonly used in cryptocurrency trading. Margin refers to the amount of funds that a trader needs to deposit in order to open a leveraged position. It acts as a form of collateral and helps to cover potential losses. Free margin, on the other hand, is the amount of funds that are available for new trades after accounting for the margin used in open positions. It represents the trader's remaining buying power. By understanding the difference between margin and free margin, traders can better manage their risk and make informed decisions when it comes to leveraging their positions.
  619155