Margin trading, or leverage trading, is a method of trading in financial markets where traders can use borrowed funds provided by a broker to increase the size of their trades. In this case, the trader only needs to provide a portion of the trade’s value, while the rest is covered by a loan from the broker. This allows for opening positions that significantly exceed the trader’s own funds, potentially increasing both profits and losses. Margin trading is widely used in stock, forex, and cryptocurrency markets to enhance returns from speculative activities, but it also comes with increased risks of loss.