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.
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.
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