Crypto margin trading allows traders to borrow funds to increase their trading position beyond their available capital. This practice enables them to leverage their investments, potentially amplifying both profits and losses.When engaging in margin trading, a trader opens a position by placing a small percentage of the total trade value as collateral, known as margin. Exchanges often offer varying leverage ratios, such as 2:1, 5:1, or even higher, meaning traders can control larger amounts of currency than they actually own.While the potential for higher profits exists, the risks are also significant. If the market moves against a trader’s position, they may face margin calls, requiring them to deposit additional funds or risk having their position liquidated. Proper risk management strategies and a clear understanding of market dynamics are essential for anyone considering this type of trading.