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<blockquote data-quote="BadIdeaGuy" data-source="post: 4874988" data-attributes="member: 73381"><p>Margin trading.</p><p>Users can open positions much larger than their capital would allow by borrowing money from the platform.</p><p></p><p>If you borrow 100X your money, you can open a position 100 times larger.</p><p>But. If the price goes down by 1%, you've lost your original capital, and so they take their money back, leaving you broke.</p><p></p><p>High stakes gambling.</p><p>And the house always wins.</p></blockquote><p></p>
[QUOTE="BadIdeaGuy, post: 4874988, member: 73381"] Margin trading. Users can open positions much larger than their capital would allow by borrowing money from the platform. If you borrow 100X your money, you can open a position 100 times larger. But. If the price goes down by 1%, you've lost your original capital, and so they take their money back, leaving you broke. High stakes gambling. And the house always wins. [/QUOTE]
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