Margin Trading
By CoinGecko | Updated on Mar 03, 2020
It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade. The borrowing requires you to collateralize a minimum value of your own assets. If during the trade, the market moves negatively to your trade, a margin call will takes place so that your trade account retains the ratio of your borrowed funds to the collateralized assets.
Related Terms
Masternodes
Computers that are responsible for processing blockchain transactions and receive a reward when a block is mined.
Initial Coin Offering (ICO)
Initial Coin Offering (ICO) is the equivalent of Initial Public Offering (IPO), where a company/cryptocurrency venture raises funds through crowd sales.
Arbitrage
A strategy where investors buy a currency in a market and sell it at a higher price in another market to gain profit.
Directed Acyclic Graph (DAG)
Directed acyclic graphs refers to a data structure that is built in one single direction, yet branches out and never repeats.
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