HomeOn Margin Trading
On Margin TradingLevel: Beginner
SM
Samuel McCulloch
Head of Adara Academy & Trading division. Professional crypto trader with experience in capital markets, options and futures trading.

Terminology

Leverage — a way to open a trading position while only placing a small deposit. Margin trading lets you trade with more money than you actually have.

Minimum margin — works as collateral for your loan. If you make losing trades, you’ll have to pay your lenders out of your minimum margin.

Initial margin — the amount of money you put up for a leveraged trade — can be 10%, 30%, 90%, etc of the leveraged amount.

Liquidation value — the difference between your buying power and the amount of money you own.

Margin call — a request to either leave your leveraged position or add more money beyond your initial margin.

Maintenance Margin Requirement — how much of your own money you need to put up to open and stay in a leveraged position.