In traditional margin trading, investors can utilize additional leverage using what is known as “margin”. It’s like borrowing money from your stock broker to buy a larger position in a stock – bigger gains, but quicker losses.
Margin rates vary depending on the exchange and the requirements can differ based on the volatility of an asset. In DeFi, margin rates can vary but are often less than the rates of traditional finance. It’s available to everyone and contrary to popular belief, can be a lot safer than traditional finance!