When trading with margin, leverage is used to amplify potential gains. For example, a trader using 10x leverage on $BTC can control 10 times their initial investment. Collateral is required to open a margin position, typically sitting at 20-50% of the total trade value. Liquidation thresholds are also set, which is at 80% of the initial collateral value. If the trade value falls below this threshold, the position may be liquidated to prevent further losses. Understanding these concepts is crucial for traders, especially when dealing with volatile assets like $ETH and $LTC . Trading on margin requires careful risk management. #tradingterms #margincall #cryptotrading