# What is Leverage and Margin

## Leveraged Trading

**LEVERAGED TRADING** (or **margin trading**) is a trading technique involving the use of borrowed funds, in order to increase potential profits. Leveraged trading allows you to trade and profit with Volumes much larger than you would be able to if using only your personal funds. **Leveraged trading** allows traders to profit from both rising and declining markets by means of [*Long buying*](/help-center/leverage-trading/profit-from-market-growth-long-positions.md) or [*Short selling*](/help-center/leverage-trading/profit-from-market-decline-short-positions.md) strategies.

## **Leverage and Margin**

**LEVERAGE** reflects the amount of a traders own funds (margin) required, in comparison to the size of the position that they wish to open. (1:1000, 1:100, 1:50, 1:20, 1:10, 1:2, etc.)\
**MARGIN** is the amount of a Trader’s own funds that are required to open a position.\
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Example: with 1:200 leverage I only need 0.005 BTC of my personal funds (Margin) to trade with 1 BTC.\
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PrimeXBT offers the following **Leverage:**\
\- Cryptocurrencies - up to 1:200 for BTC and ETH, and up to 1:100 for altcoins\
\- Indices and Commodities up to 1:100\
\- Forex pairs - up to 1:1000\
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Detailed information regarding leverage for all available instruments can be found [**here**](https://primexbt.com/fees)

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