Margin trading describes a way of investing where you use margin. Margin increases your investment power. Margin is a borrowed asset (stocks or cryptocurrencies
), usually from the financial services company you are investing with, that allows you to make larger investments in the hopes of making even more money. This advantage is known as leverage. The borrowed assets aren’t free, you must pay back interest on each transaction involving margins. Margin allows the investor to control much more assets than he actually owns giving him the opportunity to make or lose more money.