Margin refers to the collateral required to open a leveraged trading position. In trading, investors can borrow funds to increase their exposure to price movements without having to pay the full amount upfront.When trading on margin, a trader only needs to deposit a fraction of the total trade value, known as the margin. This allows for greater potential profits, but it also increases the risk. If the market moves against the trader, losses can exceed the initial deposit.For example, if a trader has a margin requirement of 10%, they can control a position worth $10,000 by only putting up $1,000 of their own capital. However, if the asset’s price declines by a certain percentage, the trader might receive a margin call, requiring them to add more funds to maintain the position or risk having it liquidated.Understanding margin is crucial for anyone engaging in leveraged trading, as it carries both opportunities and significant risks. Proper risk management strategies are essential to navigate this type of trading successfully.
Avalanche Treasury Co. to Go Public in $675M Deal With Mountain Lake Acquisition
Avalanche Treasury Co. (AVAT), a digital asset treasury company aligned with the Avalanche Foundation, said Wednesday it has agreed to