Margin Trading on Centralized vs. Decentralized Exchanges What is Margin Trading? Simply put, margin trading refers to a trading technique that allows an investor to trade assets with funds provided by a third party (usually an entity). Thus, you can leverage their funds to trade assets and make some bucks yourself. This type of trading is mostly adopted by investors (both retail or institutional) who are low on funds but are interested in increasing their financial powers through assets trading. Essentially, the funds from the third party enable the investor to trade with a bigger sum of money than the individual personally has. Of course, in most cases, your investment power determines your profit. Thus, getting financial assistance from such third parties also boosts your chances of earning more from your investment. Margin Trading on Centralized Exchange A centralized cryptocurrency exchange resembles traditional bank, stock market, or brokerage firm in many ways. Almost all the transactions and functionalities are completely controlled by one single central entity on the centralized exchanges. Thus, users of centralized exchanges are not the only ones with access to their account wallets’ private keys, giving the company in charge an absolute control over the transactions conducted on their platform. You simply can’t make transactions without the involvement of the company in charge since your operations are limited to the mechanisms they provide. Such mechanisms are usually subjected to the approval of a central authority. #Hashtag #DEC777 #DCF #MagrinDEX, #FutureDEX #DeFi #DeFiexchange #DEC777exchange https://www.instagram.com/p/CFZrJTRAmCD/?igshid=rdjv0g6gezym
