What is Margin Trading in Forex Trading? A Guide Explain
Margin trading in Forex, or Foreign Exchange, is a type of trading that involves borrowing money from a broker, using the investor’s existing funds as collateral. This allows investors to buy larger amounts of a currency than they would otherwise have been able to purchase. Margin trading can be beneficial for experienced traders as it provides them with greater potential returns, however, it is important to understand the risks associated with such trading, as losses can be significant.