Margin trading

Trading with borrowed funds, using your assets as collateral.

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What is margin trading?

Margin trading uses borrowed funds to increase your buying power, with your own assets held as collateral. It lets you take a larger position than your balance alone would allow.

The risk

This can amplify gains, but it also amplifies losses, and a move against you can trigger a forced sale of your collateral. It is a higher-risk approach best understood fully before use.

Related terms

Roles for adding liquidity to an order book or taking it away.

An order to buy or sell immediately at the best available price.

The total value of a cryptocurrency, found by multiplying its price by its circulating supply.

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Start investing today

Your Luno app makes investing straightforward, with a clear and intuitive app experience we know you’ll love.