What is margin trading?

Firstly, margin is a deposit required to open a leveraged position – that is a position larger than your capital investment. So margin trading allows you to purchase larger units of an asset at a fraction of the cost in order to increase your market exposure even if you are trading with limited capital.

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This means that with the same capital, you will be able to buy more of an asset. The result is a more substantial profit when you win a trade and of course, a more significant loss when you lose.

Not sure on how to calculate margin for products on Deriv? Click here