When you trade on margin trading, a practice where you borrow funds from a crypto exchange to increase your position size. Also known as leveraged trading, it lets you control more assets than your account balance allows—potentially boosting profits, but also magnifying losses. This isn’t magic. It’s math. And like any loan, you pay interest, and if the market moves against you, you can lose more than you put in.
Most major crypto exchanges like Binance, Kraken, and Coinbase offer margin trading, a feature built into their trading platforms that allows users to borrow assets. But not all platforms are the same. Some, like Bamboo Relay, let you borrow through protocols like bZx, while others use their own internal lending systems. The key difference? Liquidity, fees, and how strict the liquidation rules are. If your position drops too far below the required collateral, the exchange automatically sells your assets to cover the loan—sometimes at a steep loss. That’s why many traders lose money not because the market went against them, but because they didn’t understand how liquidations work. You also need to know about leverage, the multiplier that tells you how much you’re borrowing relative to your own capital. A 5x leverage means you’re trading with five times your deposit. Sounds powerful? It is—until a 20% drop wipes out your entire position.
Margin trading isn’t for beginners. It’s for people who’ve studied price action, understand risk management, and have a plan for when things go wrong. You’ll see this in posts about exchanges like Cryptomate and BICC Exchange—where users compare leverage limits and funding rates. You’ll also find discussions on how trading pairs affect margin positions, because not all pairs behave the same under pressure. Some tokens, like meme coins or low-cap ERC-20s, are especially dangerous to trade on margin because their prices swing wildly and liquidity dries up fast.
What you’ll find here are real reviews and breakdowns of platforms that support margin trading, along with warnings about the risks most guides ignore. You’ll learn which exchanges actually let you trade with leverage without hidden fees, which ones have poor liquidation protections, and which ones you should avoid entirely. No fluff. No hype. Just what works—and what gets people burned.
Liquidation engines automatically close leveraged crypto positions when collateral drops too low. Learn how they work on centralized exchanges vs. DeFi, why ADL happens, and how to avoid getting wiped out.
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